Wednesday, September 23, 2009
Gov't supplanting consumers
From an article by Robert Reich that appeared on the Huffington Post.
"In other words, the Dow is up despite the biggest consumer retreat from the market since the Great Depression because of the very thing so many executives are complaining about, which is government's expansion. And regardless of what you call it -- Keynesianism, socialism, or just pragmatism -- it's doing wonders for business, especially big business and Wall Street. Consumer spending is falling back to 60 to 65 percent of the economy, as government spending expands to fill the gap."
Yes...just as I have been saying for some time. This also has great import for China, which is being forced, by way of our policies, to rely less on exports and support growth domestically.
Read more at: http://www.huffingtonpost.com/robert-reich/why-the-dow-is-hitting-10_b_294682.html