Consumers Drop the F-Bomb on Government Economists
The consumer engine that drives our economy isn’t returning to its borrow and spend ways.
“F—you” say consumers who refuse to comply with the pleas of government economists that we revert to our bad habits of yesteryear.
This is most pleasing to Mr. ToughMoneyLove.
We know who the drunken sailors are, don’t we? They work in Washington, D.C. Well, they don’t actually “work” in the way that we do. They hire friends and family, forget to report income, hit-up donors for campaign contributions, and try to get on television. In between they pass stimulus bills to buy votes.
While consumer spending has not increased at a rate that the Obama team desires, the savings rate has increased. Yet no one in the Obama administration is calling for us to save more, are they? Another one-fingered salute for you, government planners!
Consumer borrowing fell in July for the sixth straight month. Consumers are “deleveraging.” That’s not part of the government “return to economic glory” strategy either.
This reluctance to spend is not confined to the middle classes. High income households are also holding back on spending because of concerns about higher taxes.
Our bumbling leaders don’t know what to do with us. We are not following their lead by emptying our wallets. And now they must focus on their most important job – getting re-elected. Unfortunately, they have nothing but sustained unemployment and extreme government deficits to show us.
Why are consumers collectively turning their backs and raising their middle fingers to government economists? Because we do not trust them. We do not believe that what began in late 2007 will not happen again – and again. Many of us have learned our lessons. But we don’t believe the government has.
We are doing our own thing. The government should listen to us and follow our lead. It should stop spending so much of our money. If and when it does, we will regain our confidence and ease back into a pattern of increased spending on our own. Then the economy can recover.
That’s my story and unless readers can convince me otherwise, I’m sticking to it.