The current fairy tale that the administration has been propagating is that any talk of a recession is either “misinformation” or “disinformation.” The administration hopes that sometime in the near future they will be able to arrest people for spreading the truth just as we saw in connection with the stealing of the 2020 election.
We have seen massive waves of inflation hitting the pocketbooks of everyday Americans. This is not being matched by wage increases. What would be the obvious result? Less economic output as people tighten their belts. All of this is a direct outcome of the economic policies of this administration.
(Wall Street Journal) – U.S. retail spending and manufacturing weakened in November, signs of a slowing economy as the Federal Reserve continues its battle against high inflation.
November retail sales fell 0.6% from the prior month for the biggest decline this year, the Commerce Department said Thursday. Budget-conscious shoppers pulled back sharply on holiday-related purchases, home projects and autos. Manufacturing output declined 0.6%, the first drop since June, the Fed said in a separate report.
Let’s understand just what these numbers are showing. As Sundance notes:
Keep in mind, retail sales are calculated in dollars spent by consumers. November 2022 retail sales as reported by the commerce department today [DATA pdf], reflect a 0.6% decrease in spending vs October. November data includes Thanksgiving, Black Friday and the traditional early holiday shopping. 0.6% less dollars were spent, despite prices being double digits higher than the prior year.
Think about that. November was less than October despite the traditional start of the Christmas shopping season with Thanksgiving. There is a significant retrenchment going on with the economy.
People are being forced to spend more on the necessities of life, energy and food for example. They have less disposable income to spend on other items. When actual dollars spent decline during periods of high inflation, this means that economic activity has slowed considerably.
Sundance’s example:
When the prices you are charging for goods and/or services are 10, 20, even as high as 60 percent more than prior year, yet your sales are running flat to negative – that means consumer purchases of those goods/services are substantially lower.
If you were selling 100 widgets for $1 each in 2021, you gross $100. If your widgets now sell for $1.25 and you gross $94 in 2022 sales, you have sold 75 widgets.
In 2021 you sold 100 widgets, in 2022 you sold 75 widgets, a difference of 25 widgets.
Everything attached to the raw material, creation, manufacturing, distribution and sale of those 25 missing widgets is no longer part of the economic activity associated with your widget business. You are now telling your suppliers you don’t need as many widgets, because they are not selling. You have lost 25% of your business in this scenario.
Everything associated with the drop in consumer spending now begins to downsize. Downsizing means less labor needed. This process triggers the economic impact shifting from the consumer sales side of the ledger to the income side of the ledger for employers, employees and workers.
Remember layoffs come late to the process of recession. Consumer spending is declining in ACTUAL DOLLARS. With inflation where it is, this means a significant impact on the economic output. That is, the number of units of economic output. Businesses are starting to cut the work force just to stay afloat. Labor that does not directly support the core business will be cut first.
As supplier contracts expire, the new ones will be considerably higher. This puts huge financial pressure on companies to downsize when they are selling fewer units.
All of this is as those behind the throne want it. They are trying to reduce the population so that their schemes for world control will be easier to implement.
The economic disaster coming will dwarf the 2008 meltdown.
