[dirtboy]

The average American has $1,315 less in annual disposable income now than at the onset of the Great Recession.

My gross pay has gone up. I watch my expenses so inflation doesn't impact me much.

I think there are two main factors impacting consumer spending - unemployment and the fact that homeowner's can't borrow against their bubble equity the way they used to.

[ex-snook]

“I think there are two main factors impacting consumer spending - unemployment and the fact that homeowner’s can’t borrow against their bubble equity the way they used to. “

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Right on the money [no pun intended!] throw in maxed credit cards and you have the recession trifecta.

[But based on the debate last night, if taxes were not so complicated everyone would be working and all these problems would go away - wanna buy a bridge?]

[kara37]

It's not just borrowing against their equity, it's the loss of their equity. Most Americans greatest source of wealth is/was tied up in their homes. It offered a safety blanket for a lot of people.
I always knew that if something ever happened, we could sell our house or tap into our equity line. That is no longer an option for us or countless others.
Although, we are actually doing pretty well in this economy. I'm am spending significantly less, because we have nothing to fall back on except what is in our bank account.

[tbw2]

Factors in this for most households:
* Health insurance premiums rising 5-15% per year, while income is flat.
* Food and fuel are up from 3 years ago. Percentages vary, but up.
* Incomes dropped, due to unemployment and wage deflation.
* Childcare up, because of minimum wage increases.