USA TODAY: …A tenet of economics is that in a recession, people start pining for things they want, but can’t afford. That’s called pent-up consumer demand. Eventually, they save enough (or get more income) and break down and buy those things. When that happens, the recession ends…
Cars are better built than they used to be, which is one reason people are hanging on to them. But another is that people simply don’t feel comfortable buying a new one in the current economy. “What we’re seeing now is that consumers are more in favor of repairing an aging auto than taking on new debt,” Franco says. … (more)
Tough times
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No wonder we’re not spending: |
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| Change in real income, 2009-2010 |
-2.3% |
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| Average stock mutual fund, 2011 |
-11.8% |
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| Avg. home price change1 |
-6.0% |
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| 1 – June 2010-June 2011; Sources: Census Bureau, Lipper, Standard & Poor’s | |
EDITOR: They mean tough time for the middle and disadvantaged classes!
