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How much depends on consumer spending?

Some people are hoping for an economic recovery this year but I am not so sure any respite will last more than a few months because I don’t see evidence that consumer spending will increase.

Due to relatively high unemployment and many workers who are unable to get raises, how greatly can consumer spending increase? If consumer spending doesn’t increase, corporate profits can’t increase much.Neither can government revenue.

So how is the economy supposed to recover?

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This entry was posted on Tuesday, June 23rd, 2009 at 8:02 pm and is filed under Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How much depends on consumer spending?”

  1. Stock market investment blog » Blog Archive » Headlines misleading the public on Buffet’s view of the US economy Says:
    June 25th, 2009 at 1:35 am

    [...] Stock market investment blog Investing news: stocks, real estate, economics, personal finance « How much depends on consumer spending? [...]

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