Paulitical Economy™

Post 362: High Income Consumers Drive Spending While Consumer Sentiment Hits a Half Century Low

• Paul Musson

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0:00 | 27:51
  • Sales at Dollar General are slowly accelerating. 
    • Even with discretionary items.
  • But sales growth at Dollarama is ticking lower. 
    • And we take a look back.
  • Retail sales and the Special K economy. 
    • The bottom 70% of income earners reduced their spending.
    • But that was more than offset by increased spending from the top 30%.
  • Luxury furniture retailer RH has had impressive sales growth, albeit slowing. 
    • Share price growth? Not so impressive.
  • Consumer sentiment in the US is the lowest on record. 
    • What might be causing this?
  • Financial Ructions: 
    • Distressed office building sales soared last year in America.
    • Interest rates continue to rise in Japan. 
      • As does inflation pressure.
  • Book Review: 
    • President Hoover was rightly worried about the RFC (Reconstruction Finance Corporation) becoming a gigantic banking and pawn-broking business.”
    • Keynesian economics was not really attempted by FDR. 
      • And he didn’t believe that large government debts led to economic prosperity.