All Commentary
Tuesday, August 31, 2010

Consumer-Spending Stats Paint Misleading Picture

“At first blush, a government report released Monday appeared to offer hope to the nation’s struggling auto industry: New-car sales in July fueled an uptick in consumer spending, which had been wheezing for three straight months. But a closer look at those car sales raises questions about whether the auto market — and consumer spending as a whole — are indeed on an upward arc or whether they are just treading water.” (Washington Post)

The Keynesian fixation on consumer spending never quits.

FEE Timely Classic
“Consumption Can Drive Economic Growth? It Just Ain’t So” by Christopher Lingle