American Consumer Spending - Page 2 of 2

American Consumer Spending - Page 2

This is half the battle. If Americans feel confident in the economy and start to spend on big items and home improvements the economy will tick up. Once this happens it's a domino effect, people buy more, so we have to produce more, so people get hired to keep up with production demand, so salaries go up, so people feel confident in the economy, so people buy more… etc. This is a simplistic way of stating things, but it displays the cycle. As long as there aren't any hiccups the cycle reinforces itself.