GOOD NEWS: Consumers are spending!---In the month of September consumer spending increased by 0.6 percent. That is three times the increase in spending for the month of August. This spending according to an economist is due to a transfer of income from saving to spending, because earned interest is now believed to be worthless, if not, nonexistent.
Spending is tied to unemployment---the more consumers spend the greater the demand for goods, the more workers are hired to meet demand. September saw an increase in car sales, durable goods, jump to 2.2 percent. Service purchases of utilities and rent slightly increased by 0.2 percent and non-durable goods, such as clothing, rose by 1.1 percent.
Some economists are fearful that consumers will not be able to continue their spending ways without earning more. And many economists believe that in order to sustain these spending gains, employers must accelerate hiring.
GEORGIA GWINNETT COLLEGE---Administrative Assistant II, School of Education
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