Contributor Since 2012
"When consumers spend more, businesses grow and, in return, the economy grows," Lombardi simply states. "…the current U.S. economy lacks consumer spending and thus it lacks growth."
In the article "Steak Houses Struggle as Big Spenders Start to Feel the Pinch," Lombardi notes that in a growing U.S. economy, when consumer spending goes up, consumers are more inclined to go to a good restaurant, buy a steak dinner, purchase that better smelling cologne, and buy the better looking car.
With evidence of luxury goods and service providers getting hit by the economic slowdown alongside mid-market restaurants, Lombardi states that it's not only the middle class that has been squeezed but the high-income earners as well.
Lombardi believes the pullback in sales at fine-dining restaurants can be attributed to higher-income earners feeling less confident about the economy and, thus, holding back on their spending.
"The pockets of the average American in the U.S. economy have been getting emptier each passing day in this post-recession recovery," says Lombardi.
The Profit Confidential lead contributor concludes, "Until the average American can retain enough disposable income to raise consumer spending, the U.S. economy will not see any economic growth."
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