Americans Cut Back Sharply on Spending .... (first decline since 1991)

[RedEarth]

Source: nyt

Strong evidence is emerging that consumer spending, a bulwark against recession over the last year even as energy prices surged and the housing market sputtered, has begun to slow sharply at every level of the American economy, from the working class to the wealthy

The abrupt pullback raises the possibility that the country may be experiencing a rare decline in personal consumption, not just a slower rate of growth. Such a decline would be the first since 1991, and it would almost certainly push the entire economy into a recession in the middle of an election year.

There are mounting anecdotal signs that beginning in December Americans cut back significantly on personal consumption, which accounts for 70 percent of the economy.

A raft of consumer companies — high-end stores like Nordstrom and Tiffany, and middle-of-the-road ones like Target and J. C. Penney — reported a pronounced slowdown in growth last month, and in several cases an outright drop in business.



Read more: http://www.nytimes.com/2008/01/14/business/14spend.html...

[Vincardog]

1. Once again I ask "How long did they think they could export jobs and import crap without paying the

price?"

[Supersedeas]

15. uh oh, the media is just not catching on

[barb162]

17. Actually, "they" don't care. They'll just move their corporate

offices and operations to Bermuda and keep bloodsucking the US until they move on to their next victims.

[napi21]

2. NO THEY'RE NOT! There's only so much $$ to go around, and if

food pricesve increased 29%, gasoline has increased 30%+, utilities have all increased, clothing prices have increased, there's just no money left to spend at the damn mall!

[DJ13]

3. This is an important lesson for the corporatists

They cant all raise prices at the same time while maximizing their profits by underpaying their employees, and hope the economy doesnt tank.

Sorrys assholes, it dont work that way.

[barb162]

18. No, it's not a lesson. They realize what they have been doing.

They will just do this now to other nations (and they already do it where they can) unless those nations wise up and look at the example of the US.

[DS1]

4. there's a high-end boot store (think Nordstroms for your feet) that opened up in town

I've never seen a customer in it. The sale prices for some of these leather women's boots were still over 250. I don't suspect they'll be around much longer, there's a half-off sale just started.

[Kahuna]

5. I know I have. Inflation is eating up all of my disposable income..

Damn shame.

[awoke_in_2003]

12. What is disposable income?

I forgot. In 2000, I made $20 and hours, and always had money. I now make $28 and hour. No new bills, no new credit, and I never have money. Of course, gas has doubled, natural gas and electric through the roof. All groceries cost a lot more. Textbooks are through the roof. It is sad indeed.

[zeemike]

6. Good, we need to stop buying crap

And save our money for a time in the future when they will want to sell us things we need, like an electric car and home made energy things that will solve the world problems as well as enable us to live a better life at lest cost.

[Doctor_J]

7. Let's see - what was happening in 1991

Oh, that's right - Bush the Not Quite As Stupid was president. The Bush family is to America what syphillus is to the human body.

[ladywnch]

11. ouch!!! that's harsh!!!!!

:rolf:

[sfwriter]

13. Unfair to syphillus!

At least that is more fun to catch than a Florida recount...

[Doctor_J]

8. Reduced spending at all levels of the economy

even Bush's base is running out of things to buy. I guess once you have 4 houses, two airplanes, and a boat, you get bored.

On the upside, reduced consumption will be better for the country over the long haul

[PADemD]

9. Yes. Less garbage in our landfills.

[L0oniX]

10. The revenge of Reverend Billy

http://www.revbilly.com/

[melody]

14. Golly, there's a surprise

Kill American jobs, destroy American consumers, Americans have no money to spend.
And 70% of the economy -- poof. And the NY Times is surprised?

[TheLastMohican]

24. And even that money is taken from credit

Every single American born and raised owes more than 27000 in foreign debt and this amount is rising.

[Hugin]

16. Can't get blood from a turnip...

or so they say.

[tranche]

21. Can't sqeeze blood from a turnip, but there's always China!

Corporations don't give a flying loaf about American consumers any more. China's the new growth engine, and Dubai's skyline's looking mighty fine to those companies built on the back of American infrastructure and labor.

[knitter4democracy]

19. Where do these people live, for crying out loud?

Most of us are living tighter than we ever have. Where do these analysts live that this is news to them?

[fascisthunter]

20. I Have no Money to Cut Back

unbelievable

[Lydia Leftcoast]

22. One company after another announces layoffs

and economists are wondering why those naughty consumers aren't spending?

I KNEW there was something peculiarly dense about many of the economics graduate students I knew in graduate school.

[TygrBright]

23. hey, hey, hey... take it easy on the "gloomy science" guys & gals...

...after all, they correctly predicted seven of the last three recessions!

fairly,
Bright