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originally posted by: arjunanda
Well Surprise Surprise Surprise Boys and Girls, The Gang of Einstein's over at The Wall Street Journal are finally coddling on to the fact that there's just not as many Discretionary Transactions flowing through the economy. So, they have wondered why this is happening.
It's because everything we need to survive is so Darned Expensive! Rents/Mortgages, Medical Care, Food etc. has gone through the roof!!!
Sp, they have been hoping to prime The Spending Pump with their Great Black Friday.Cyber Monday Deals/ Well, I've got Mad News for The Retailing Corporations (Monetary Extraction Devices). People are Tapped Out! Yeah, we'll bit at The Little Bit of Chum they throw in the waters to hopefully restart a consumer feeding frenzy and once those items are gone, then so are we. Adios A-Holes .
From what this article says, even The Top Ten Percent which had been supporting Consumer Discretionary Spending is now shrinking down to Five Percent, Oops!
So Waddya Think ATS, Is this article On The Money (Remember That Stuff, LOL) Or, have they got this ALL WRONG?
Lettuce Know what you think, All Comers, Answers and Complaints will be dealt with in The Usual Way (with A Friendly Respectful Answer).
Mods, I've put this in The Global Meltdown Section, you Guys and Gals Know The Drill if this needs Moving/
Thanks Everyone for taking a look at this and especially Our ATS Compadres with Replies. Peace Y'ALL Arjunada.
With Black Friday sales plunging and Cyber Monday growth slowing, it appears the chicken of stagnant wages and debt-saturation are coming home to roost for a massacred middle-class America. However, as WSJ reports "we are buying less stuff," because the basic costs of necessities such as healthcare, food eaten at home, rent, education, and cellphones have surged.
As The Wall Street Journal reports,
Consumer spending continues to make up just over two-thirds of the U.S. economy. But where households spend that money has shifted significantly.
To see how it has moved, the Journal analyzed Labor Department data on 2013 out-of-pocket spending for the middle 60% of the population by income—households earning between about $18,000 and $95,000 a year, before taxes.
The data show they are losing ground. Overall spending for the group rose by about 2.3% over the six-year period from 2007, even as inflation totaled about 12%. At the same time, income for the group stagnated, rising less than half a percent.
With health care and other costs rising, these consumers spent less on furniture, entertainment, clothing and even child care, the Journal analysis found.
“Part of the story is that your income growth is slowing,” said Steven Fazzari, an economist and chairman of the sociology department at Washington University in St. Louis. “They’re spending more on necessities, cutting back on other types.”