Consumer Spending

Since the recession our country has gone into saving mode. As many media outlets have described in detail this really makes the recession worse because we are a country of services. If no one is buying those services then the companies start to fail and lay off people. The more people get laid off the more fear is placed in the heart of Americans and the more we save for the "worst case scenario". Its a self fulfilling prophecy of sorts.

This blog is about the media and the information the administration is putting out there. The Obama administration and the media are very correct when they say that the way to get out of this recession is for Americans to start spending money again. We are the largest consumers in the world and as such everyone depends on our consumer confidence. My problem is the motivation that this "institution" is providing.

Sure, we have had a stimulus and a tax refund but in reality what did that represent to you? Did those $600 or $1200 really help you? Or did you simply pay down bills that you had accumulated over the last 10 years of seemingly unending prosperity?

My point is that the end of this recession will come when Americans start spending again and that is simply not the case at the moment. We are told that it is up to us to end this but what example is the administration setting? We have bailed out banks who now don't lend us our own money. We have created programs that funnel money to foreign auto makers hiring foreign workers. Our credit cards cut our limits while they are charging us 9-29% interest. All we hear is news of a growing deficit, more taxes, an unpopular and expensive health care reform that will be forced on us, and an IRS who is hiring unprecedented numbers of auditors to come after US, the people. The people that are supposed to be pulling the whole world out of this recession. Doesn't quite seem right does it?

Seems to me like we are beating the horses that drive this nation and the world.