All the positive news about lower unemployment and a growing economy is not helping the average American feel better about spending. The Enterprises TV show explains why consumers are not freely spending as retailers had hoped.
One reason people do not feel confident to spend more is that wages are not keeping up with inflation. Wages barely budged last month only rising 3 cents and are rising at an annual rate of 2 percent, just barely ahead of inflation. Economists expect wages to grow but consumers don’t believe it. The American worker, at the very least, should be getting a cost of living increase.
The recession battered retirement accounts and hurt those soon to retire. The recession also reduced wealth overall. However, this does not seem to have hurt those who are in the one percent.
The gap in wealth inequality in
America has widened and deepened.
There is a huge gap between those who are in the top one percent and those near
the bottom. The working class is working harder and longer with no real wage
gains to help them pay off debt and loans and afford food.
Enterprises TV sees more minimum wage jobs than professional jobs. The rise in the number of professionals working at minimum wage jobs and the number of low-wage jobs grows and grows. This does nothing to compel or inspire the consumer to spend. All of these reasons could be why there are early Black Friday shopping sales and why retailers hope for a better spending season than last year.