The Wheels Are Coming Off 0
One of the most telltale signs of what is happening to our economy is the University of Michigan consumer confidence survey.
It has been trending down for the past two years and has already dropped to levels that were last reached during the 90-91 recession, when unemployment was at 7%. This shows me that increases in health care, energy and food costs are taking there toll.
It is not the fact that people are unemployed that’s the problem; it’s that they have less discretionary income to spend. Less spending will result in higher unemployment in the future, making the situation worse. Where are government’s focus should be is ending runaway inflation in health care energy and food. Addressing the fact that ethanol is causing food prices to soar, health care causes us to totally lose a consumer’s whole family to even a minor illness.
A one time tax rebate is to simplistic a cure to what are fundamental problems that will last for years.
