Real personal consumption expenditures averages 2.2% from recovery to now, which is just slightly off from the bubble economy of the early 2000's of 2.6%. Consumer demand is growing relatively stable, it is not the issue. The issue is that firms and establishments are not creating more of the jobs that benefit long term economic growth. That makes this an investment problem, not a consumer demand problem.It's funny how you don't see a correlation between wages and consumer demand. You complain of low wage jobs but can't see how that effects spending. Corporation hire because they are selling more and need more help.
The economy doesn't have a spending problem. Not that it ever did...
If the exact opposite is true, this will result in cost-push inflation.Raising minimum wage will put more money in circulation and increase sales and hiring.
Last edited by WallStreetVixen; 11-07-14 at 12:33 PM.
Economics makes people humble, because it allows us to focus on what we can't do, rather than what we should do. The fact that I am probably the smartest person in the room is merely inconsequential.A debaser, not a debater.
No convictions...other than trying to show you are the smartest guy in the room....without a solution.
If you really want to hear a solution so bad, I would adopt apdst solution with government regulation. Not because I support it, but because you don't agree, and I'll even show you how the economy may be suffering from more regulation than it needs.