Are we on the outskirts of a depression economy? The Thanksgiving weekend is traditionally when hordes of shoppers descend on retail outlets looking for the right gift at the right price. Stores open early for bargain hunters. Parking lots are overflowing. That did not happen this year.
All areas of the country are reporting the same thing. No one, literally almost no one, was out doing any holiday shopping and the traditional Black Friday rush to get deals and discounts just didn’t happen. The throngs of shoppers always seen at this time of year just did not appear. In some locations there was a greater police presence than actual shoppers.
Hat Tip…CTH
Has the consumer economy finally collapsed? Despite inflation Americans were still spending significantly on consumer items for the last two quarters. Although significant spending was there, there was an actual drop in dollars spent. And much of that was put on credit cards. American’s credit card debt surged. Since the third quarter of 2021, credit card balances have risen by $121 billion. That’s a 15% increase, the largest year-over-year jump in more than 20 years.
Now, though, much of the debt going on credit cards is for the necessities like food and energy. The wiggle room to spend on other items is disappearing.
Of course, the media must continue to pretend that all is well with the economy in America. They ignore the fact that Amazon is laying off workers right now! This is supposed to be the busiest time of year for consumer spending. UPS and FedEx are expected to follow suit.
Some numbers about increases in the volume of dollars spent in some areas point to small increase in the 1% to 2% range. Considering that inflation has been running in the 8% range, this would indicate a significant drop in the volume of goods sold.
When will the financial media give in and suggest that not all is well with the American economy?