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Home Publications Blogs Beat the Press Post Misses Uptick in Consumer Spending

Post Misses Uptick in Consumer Spending

Tuesday, 02 November 2010 05:08
In an article that reported on the Commerce Department's release of consumption data from September, the Washington Post told readers that: "consumer spending was stuck in the doldrums." Actually, the report showed a very high rate of spending relative to income. The saving rate fell from 5.6 percent in August to 5.3 percent in September. Historically the saving rate has averaged more than 8.0 percent, so consumers are currently spending at a high level relative to their income.
Comments (6)Add Comment
Excellent comments.
written by OneLove, November 02, 2010 9:44
I started reading this blog a few months ago. Its so freakin great!
Keep up the good work.
Consumer Spending will save us yet
written by Paul, November 02, 2010 10:40
Thank God for the American consumer! But for political correctness that despises consumption spending, there would be a lot more cheerleading of consumers to spend and power the economy to recovery. Ignoring the elephant in the room - consumption is 70% of demand - is ludicrous.
written by PeonInChief, November 02, 2010 11:07
Uh, consumers have no choice but to spend their income. We have expenses--rent, food, gas, insurance--and incomes have fallen. So we're spending more of it on the same old expenses.
written by John Smith, November 02, 2010 2:34
Anyone who thinks that Americans saving less is a good thing has a screw loose. Amercians need to save A LOT MORE in order to pay for their own retirement, medical, etc. It's called personal responsibility and it has been strangely lacking for the last decade or so.
With love, from me, to her
written by Chuck Mertz, November 03, 2010 12:34
Dean, I'm going to TeaBag* your wife.

written by Queen of Sheba, November 03, 2010 10:07
Consumers are no longer going to be willing to carry 70% of the economy by their spending. The Powers That Be better think of a different way.

Even so, I wonder why the Post insists on writing disingenuous articles that ensure Americans remain convinced the economy is not growing even a little bit and that everyone stays pessimistic.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.