That’s the verdict reached by the Boston Globe last Thursday in a special article entitled “Shaken consumers rein in spending” with the subheading “Closed wallets do little to stoke recovery”.
Thanks for the incisive journalism, Globe. I’m sure it’s your exemplary investigative journalism that led you to the true culprits for our lack of economic recovery when other newspapers are fumbling around with obvious red herrings like increasing wealth inequity, high unemployment, unscrupulous financial institutions, and a poor-hating government.
“I was feeling more optimistic before, but the economy’s turning again for the worse,’’ said [John] Bresnihan, 33, a social worker from Belmont. “I feel like I can’t get into a big purchase right now.’’
Consumers like Bresnihan are a key reason policy makers, analysts, and financial markets are increasingly worried about the direction of the US economy. The rate of consumer spending – which drives about two-thirds of economic activity – fell sharply in the second quarter, according to a recent report from the Commerce Department. Weak consumer spending underlies what has been a lackluster and now slowing recovery. Should consumers continue to pull back, it could push the nation into a deeper slump.
Gosh, as an unemployed person with almost no savings, I sure do feel guilty that I am pushing the nation into a slump by my inability to shop.
The real victims here, of course, are the real people: corporations who want to sell stuff that we are unjustly not buying. “Corporations are people, my friend,” says very smart man Mitt Romney.