I read this morning that spending still won't stop and inflation is still going up because there's still a glut of money. The Fed's only option is to keep increasing rates until the government and people stop spending money nonstop.

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Other states – and cities– too are flush with money, and they’re spending it in a million different ways either directly or by subsidizing one thing or another. And Congress just passed massive give-away legislation that douses corporations and consumers in all kinds of incentives, cash, rebates, and what not.

And this kind of stuff just keeps on keeping on – because states and cities are flush with pandemic cash, and cash from tax revenues, and they’re going to throw this money at their businesses and consumers. And Congress is still living in an era where money was free, and it acts like it.

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Total consumer spending on goods and services, adjusted for inflation – so “real” consumer spending – ticked up by 0.1% in August from July, and by 1.8% from a year ago, to another record, despite raging inflation.

This was driven by increased spending on services (adjusted for inflation), even as spending on goods (adjusted for inflation) continued to dip from the huge mega-stimulus surge last year. Clearly, the Fed’s message about wanting to slow demand hasn’t gotten through to consumers just yet

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Posted by Bard

Definitely NOT an admin

Member since Oct 2008

52037 posts

Posted on 10/1/22 at 2:17 pm to Thundercles

I would love to see unit sales in comparison to adjusted sales dollars. With the inflation and shrinkflation we've seen I have to wonder if that isn't skewing sales upward as people are spending more but getting less (this is truer with soft goods, but the principle is the same).

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