He’s right, of course. But additionally, I think there is a demographic factor. Baby boomers, of which I am one, are simply going to be spending less from here on out. My kids are grown, so I’m not buying stuff for them anymore. I’ve bought and furnished my last house. I no longer need four cars and the two that I have I’m going to keep around for awhile. I’m socking money away for old age.
I agree. I'm 55 and I don't plan on making any more major purchases in the foreseeable future. We actually started planning for this about 7 years ago.
As a fellow baby boomer (tail end of the era) I agree, however, Doctor Sowell used as an example the 1920 recession. There were no baby boomers during that recovery. It is not that we spend less, we are a bigger hit on the economy as we retire. That said, when you paid into a system for 47 or more years, considering you a problem now after taking your money for so long is unethical and a result of mismangement by the government.
Not to mention, I am not interested in discretionary spending until 0bama is out of the WH. I do not want to contribute in any way to the potential “success” he might claim if it appeared we were having a recovery. We are truly middle class in my household. If I have this attitude, think of the money being held back by the “wealthy”.
So, your money isn't being pulled out of the economy... unless the government is creating so much uncertainty in the market that banks and businesses refuse to do anything with your money.
Oh, wait...
:-P
same here at our house