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Tuesday, June 28, 2011

Consumer Spending Weakens as Incomes Stagnate

“Americans in May spent at the weakest pace in 20 months, a sign that gas prices are taking a toll on the economy, according to a government report released on Monday…. Incomes rose 0.3 percent for the second consecutive month. But adjusted for inflation, after-tax incomes increased only 0.1 percent in May, after falling by the same amount in the previous month. By that measure, incomes have been essentially flat since the beginning of the year.” (New York Times)

When government impedes recovery, this is what happens.

FEE Timely Classic
“On the Austrian Theory of the Trade Cycle” by Donald J. Boudreaux