Consumers Concerned after Congressional Budget Office warning
Texas Insider Report: WASHINGTON D.C. Reuters earlier this week reported The
Consumer Confidence Index plunged to its lowest of the year -- down nearly six points to 60.6. In addition consumers are hearing a lot about the nations record debt and
the so-called fiscal cliff -- a combination of massive tax increases & cuts to the Defense Budget set to kick in at the end of the year should the White House & Congress fail to act.
There is also the reality of falling incomes. Bloomberg reported last Friday that an analysis of Census Bureau data found Median Household Incomes have fallen 4.8 since the recession ended in June 2009.
According to the studys authors
Almost every group is worse off than it was three years ago… Were in an unprecedented period of economic stagnation.
According to the Associated Press:
A 90 reading that indicates a healthy economy -- (is) a level it hasnt touched since the recession began in December 2007.
Gas prices are also on the rise again and so too are consumers anxieties
about the state of our economy. No doubt the two are related.
And finally the Congressional Budget Office warned last week that the scheduled tax hikes would likely push the economy back into a recession in 2013.
According to the CBOs analysis the economy will contract by nearly 3 causing the loss of 2 million jobs. Most of the economic damage will be due to the tax increases.
In addition the unemployment rate would likely exceed 9 in 2013.
This election to me is about which candidate is more likely to return us to full employment says former President Bill Clinton in a new ad released by the Obama campaign.
Most voters would agree at least if one believes countless polls that show the economy and jobs are the nations top concern.
Unprecedented stagnation does make it hard to be confident.
