70% of our economy is driven by consumption:
With the pandemic and social distancing, our consumption of services is down:
And our consumption of goods is way up (hello supply chain issues):
Another change is the sharp rise in debt in response to the pandemic:
While Federal debt looks bad, when you consider debt for all sectors of the economy, the jump wasn’t nearly as bad and has been moderating fairly quickly:
In the long run, these deviations will probably look like temporary anomalies. But, when we consider the overall trend of some things (I’m looking at you Federal Debt), it does give a little bit to worry about.
Given these fears (and many others), perhaps some of that goods buying has an element of shopping therapy to it! Oh well, at least that consumption is good for the economy…
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