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Consumer Confidence
By Daphne | May 1, 2008
What would boost your confidence in the economy?
- Being secure that the dollar would rise and regain its strength?
- Decreased inflation?
- Knowing that the unemployment numbers really reflected all of the population - not just those who filed for unemployment?
- Having a higher percentage of households saving money for long or short term use?
- Lower fuel prices?
Consumer confidence is very low which makes people save more and consume less. Since more than two thirds of our economy is consumer based this is detrimental.
If people think that the economy is bad people reign in their spending. Thereby making it is difficult to change their opinions and make people spend money.
Cutting the interest rate does not make me think that our economy is doing well. Higher inflation rates are better especially for investors who are on fixed income. Higher interest rates in the 6-7% range for savings accounts and CDs would make me think the economy is doing better. Then this would encourage more people to save money in liquid assets.
Working toward fuel efficient cars and having lower prices for fuel would boost my confidence in the economy.
Prices increase over time but knowing that if the prices increased gradually over the course of a decade versus a double digit increase on staples over the course of a year or two.
When majority of people are employed AND able to afford a place to live - whether renting or owning and able to afford food with a little left over then that would boost my confidence in the economy.
Topics: May 2008 |