Midwest

Consumer Spending Outlook Is 'Grim'

Consumer spending is the most critical aspect of our economy's future. Since two thirds of our economy's power comes from the ability of consumers to spend or support the economy through other means, any recovery will begin with a confident consumer. For now, the confidence level will not return for the foreseeable future. Even a 12 month window looks bleak as layoffs and an unending supply of negative news continues to demoralize the American public.

Even anecdotal evidence is sufficient to determine the direction of consumer spending. Local news in most communities includes the folding of more and more companies across all industries, both large and small, which is is a direct outcome of tightened purse strings.

If corporations and businesses want to stem the staunch the flow of red ink, then they should quit firing their employees. For each employee that is let go, the economy has one less person capable of supporting businesses or paying taxes. Accept smaller margins, lower profits and survive for now and let go of the notion that you can grow though this downturn. Now is the time for keeping the lights on and making sure that Americans stay employed.