Flat incomes raise doubts about economic recovery

[Whomever]

Flat incomes raise doubts about economic recovery

Aug 28, 4:27 PM (ET)

By MARTIN CRUTSINGER

WASHINGTON (AP) - Household income in the United States is essentially stagnant, raising doubts about whether consumers already hurt by job losses can sustain an economic recovery.

The now-ended Cash for Clunkers program helped lift consumer spending last month and is expected to deliver a bigger boost in August. But any economic rebound likely would falter if shoppers lack the income to spend more in the long run.

Especially in the U.S., consumer spending is essential: It drives about 70 percent of economic activity - more than for most European nations and well above the rates in developing countries such as China.

U.S. retailers already are paying the price for flat income growth and weak consumer spending. A survey of big retail chains showed that shoppers remained tightfisted in July. That raised fears not just about back-to-school sales but also about the make-or-break holiday shopping season.

"Consumers just don't have the financial firepower to go out and spend more," said Mark Zandi, chief economist at Moody's Economy.com. "Unless businesses curtail their job cuts, the recovery could very well peter out."

Americans' purchasing power has been battered by the 6.7 million jobs that have vanished since the recession began in December 2007. Companies also have cut costs by forcing workers to take unpaid days off or to work only part time.

And some consumers have pared their spending because their pay hasn't kept pace with their expenses or because they're using more money to save or reduce debt. Personal incomes were unchanged in July, the Commerce Department said Friday. It was the eighth month out of the past 10 in which incomes have either fallen or failed to grow.

http://apnews.myway.com/article/20090828/D9AC3RC00.html

 

[FUCK THE POLICE]

Bush's administration was the first since before the great depression that the average families made virtually no gains. In fact, since 1980, virtually all the gains that average families have made have were during Clinton's term. Growth in the average families wages for these past 28 years were 1/3 those of the preceding 28 years.

Clearly, conservatism works.

 

[Whomever]

Bush's administration was the first since before the great depression that the average families made virtually no gains. In fact, since 1980, virtually all the gains that average families have made have were during Clinton's term. Growth in the average families wages for these past 28 years were 1/3 those of the preceding 28 years.

Clearly, conservatism works.

And this is average income we are talking about in this thread not average wages.
Wages were stagnant under Bush but average income rose due to a few at the top making big bucks and skewing the heck out of the averages. The wall Street bonuses alone skewed the average income results.
And how many of us got a bonus from wall street?

 

[cawacko]

I'm sorry citizen, as an Obama voter how about you tell us average working folk how we will make more money under Obama.

 

[Cancel4]

President Obama’s central focus is on stimulating economic recovery and helping America emerge from the Bush Depression.

The current economic crisis is the result of eight years of irresponsibility, both in government and in the private sector.

The recovery plan will save or create about 3.5 million jobs while investing in priorities that create sustainable economic growth for the future.

For the long term, the President will create a new regulatory framework that holds market players responsible for their actions and stops fraudulent practices.

As we look toward the future, we must confront the many dimensions of this crisis.

 

[Mott the Hoople]

I'm sorry citizen, as an Obama voter how about you tell us average working folk how we will make more money under Obama.

Tupperware?

 

[uscitizen]

I'm sorry citizen, as an Obama voter how about you tell us average working folk how we will make more money under Obama.

We won't, things are so screwed that we will be lucky to hold on for the next several years.
Where have I alluded that we would make more under Obama.
Jobless recoverys do not exist they are bullcrap.

 

[Onceler]

What do you do in a consumer-based economy when consumers stop spending?

The prosperity of the '90's was genuine. There was a new industry - new companies, new jobs, better pay.

The rising fortunes during the last decade were more transparent: America was gripped by a need to match their more fortunate neighbors, at least in appearance. They maxed out credit cards, took 2nd mortgages against overinflated home values and spent beyond their means.

The party is definitely over. Lesson learned, as they say, but where does that leave the country? Even consumers who still have good jobs & good pay are reigning in spending, in a big way. The loss of confidence might be much more internal, as well - this generation might be more reluctant to spend for many years, regardless of circumstances.

The answer probably lies in a fundamental re-thinking of our economy, and a transition to one that is less reliant on consumer spending.

 

[cawacko]

What do you do in a consumer-based economy when consumers stop spending?

The prosperity of the '90's was genuine. There was a new industry - new companies, new jobs, better pay.

The rising fortunes during the last decade were more transparent: America was gripped by a need to match their more fortunate neighbors, at least in appearance. They maxed out credit cards, took 2nd mortgages against overinflated home values and spent beyond their means.

The party is definitely over. Lesson learned, as they say, but where does that leave the country? Even consumers who still have good jobs & good pay are reigning in spending, in a big way. The loss of confidence might be much more internal, as well - this generation might be more reluctant to spend for many years, regardless of circumstances.

The answer probably lies in a fundamental re-thinking of our economy, and a transition to one that is less reliant on consumer spending.

You talked about new industries, in 2000 our front desk receptionist/secretary left because she got stock options at a start up. The front desk gal! Those were awesome times.

 

[Onceler]

You talked about new industries, in 2000 our front desk receptionist/secretary left because she got stock options at a start up. The front desk gal! Those were awesome times.

I remember reading stories like that - janitors at Microsoft, who were retiring early as millionaires. Mark Cuban made the money to buy the Mavericks on one internet idea that he sold.

Definitely some amazing years there...

 

[cawacko]

I remember reading stories like that - janitors at Microsoft, who were retiring early as millionaires. Mark Cuban made the money to buy the Mavericks on one internet idea that he sold.

Definitely some amazing years there...

This gal never got to cash those stock options in because the company ultimately never went public (in fact in went under a couple of years later) but she got paid $75K to be the person at the front desk. I don't know what receptionists typically make but I would think that's a pretty high number.

 

[Cancel4]

Thanks to Bush's tax cuts for the rich and insane war budgets that borrowed trillions, Americans are going to have to prepare themselves for a lower standard of living.

Bushco's massive defense spending artificially inflated the global economy. The whole world will need to adjust to our more responsible, peaceful behavior.

This will be a beneficial thing in the long run, and better for future generations as America consumes less of the Earth's resources and pollutes less due to a reduction in consumerism.

Maybe increased domestic demand in China, India and Brazil can make up for the reduced demand from the US, and the emerging countries can be the new markets for the world's exporters.

 

[Cypress]

You talked about new industries, in 2000 our front desk receptionist/secretary left because she got stock options at a start up. The front desk gal!

Those were awesome times.

You f*ckers! Cawacko, don’t rub it in my face that you and your secretary were rolling in the benjamins! I’m totally jealous you had a BMW.... before it got rep’oed

I left a high paying corporate job, and took a 30% pay cut around that time, so I could be a tree hugging bleeding heart. God, I miss being an evil corporate henchman!