US Consumers Now Spend Less. Jobs Too Little, Too Late

Posted on February 23, 2010


For more that two years now, the American consumer has grown used to spending less and in many areas like clothing, spending nothing at all unless at a second-hand store. CNN just ran a piece on people benefiting from the economy – those who run the second-hand shops and those who shop there. That means one or two jobs have been created – those for the people who own the second-hand shops.

The most unsettling change to an economy with an engine that runs on retail: the American consumer has seen the light.  Buyers of “stuff” have found it’s not necessary to spend so much and now that the lesson has been learned and lived for so long – why change?  The excessive materialism associated with the American dream is dying or dead.  With taxes going up on those who used to replace their living room furniture every 10-15 years, there will be an extension of this behavior.

And for those who have had NOTHING to spend? Smoldering anger that may, at any time, just explode in the streets or teach another lesson – the imagined benefit of crime. There are people like the elderly who will not soon see jobs even if they do reappear. As a result, figures for elder crime have risen.

Last January with thousands of Americans having been out of work when he came to office, Jobs should have been at the top of Obama’s list. Financial reform and Jobs should have traveled down the legislative pipeline together; not Jobs and health care reform.

People at work could have kept the spending habit going (if that is a good “habit” to have). People at work could have begun to help fund health care reform. Timing is everything. Obama’s timing has been the result of his obstinate, obsessive character and inexperience. This President and his ruling committee are killing the economy and in the process, the lives and dreams of countless Americans who now must stand in line for benefits from a broken government.

The recession will not soon end and recovery will be slowed because of new consumer spending habits.

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