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May-19-2010 11:20TweetFollow @OregonNews
Is Increased Consumer Spending Truly a Sign that the Economy is Rebounding?Robert M. Collinsworth for Salem-News.com
“The American taxpayer is on the hook for 59 Trillion dollars” - Dennis Cauchon in USA Today
(HARRISVILLE, N.H.) - According to the “News Release” from the Bureau of Labor Statistics, embargoed until 8:30 a.m. (EDT) Wednesday, May 19, 2010, the United States is in a “stable” inflationary mode.
They are basing this on the fact that compared to $1.00 spent between December of 2007 and December 2008 to acquire goods and services, you only have to spend $1.26 to acquire the same goods and services in April of 2010.
Now let us see what they consider stable: I calculate that cost increase to be a 26% rise over the interim period. Would anyone out there other than me like to have received that same “stable” increase in personal income?
Do you think that any of the previously employed United States citizens who have lost their jobs since December of 2008 would like to have that same “stable” increase in income?
To add insult to injury, the government then has the chutzpah to say that the increase in consumer spending is a clear sign that the economy is rebounding. Common sense tells me that if the cost of goods and services increase 26% in that time period, then consumer spending will likely increase by a similar amount. That is not called “increased consumer confidence” folks . . . it is called “survival”!
According to an article by Dennis Cauchon in USA Today, “The American taxpayer is on the hook for 59 Trillion dollars”. Should that inspire confidence? Well it does not give me the warm fuzzies.
Here is why I say that.
According to Dennis’ article the average American household willingly has agreed to take-on an average of $112,043 in debt including mortgages, car, credit card, and all other debt combined, while the federal government has spent their way into a position where every U.S. household is now on the hook for an average of $516,348, this is roughly 5 times the debt the average taxpayer feels they can handle. It is one thing to overextend by a bit but 500% . . . now who in their right mind would do this.
Maybe that is a question we should ask of the incumbents who are currently being shown the door during this primary election season, since they are the ones who created this situation. If these figures indicate that the economy is rebounding, then I believe that it is appropriate to ask where this particular rebound is headed before we all reach the probable destination, 1,000 feet below the cliff we are so obviously headed for.
But... that is just my opinion!
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