Sign #1: The consumer is down and out

Posted Sep 19th 2009 9:00AM by Michael ShulmanMichael Shulman RSS Feed
Filed under: Consumer Experience, Economic Data

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october market crashThe driver of the U.S. economy is the consumer -- consumer spending accounts for 70% of the nation's GDP -- and the consumer is down and out.

Americans have lost 40% of their wealth in the past two years; more than $4 trillion in credit lines will have vanished by year-end; the real unemployment rate (unemployed, discouraged and part-time workers wanting full-time work) is roughly 20%; and weekly work hours and wages are stagnant. In short, most consumers have no extra income to spend.

Next: Sign #2: W-shaped recession

Tags: michael shulman, october market crash, unemployment

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Last updated: February 10, 2010: 11:13 AM

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