bearfund

Consumers Spending Less Than Justified by Actual Income

Aren't you overlooking the fact that spending has been at or above income for most of the last decade? Given the number of households with little or no savings, the number of households with high-interest debts as much as half their annual income, and the number of unemployed workers, I would say even today's slightly reduced level of spending is somewhere between optimistic and profligate.

Write it down and take it to your gold-filled safe: unless incomes start rising rapidly, consumer spending has a long way left to fall.