It is no secret the economic situation in the United States since about 2008 has been far less than ideal. We have seen millions of people lose their jobs due to their employers going out of business or simply having to make cuts to make up the difference in lost business. Then, things appeared to be turning around slowly but surely as of mid to late 2012, but the politicians put yet another dent in the economy when they were unable to reach a long term deal in regards to the fiscal cliff and the debt ceiling.
Sure, they raised taxes on the “rich” and they ended the social security tax break that everyone had been receiving over the last handful of years. But, the republicans, and anyone with common sense, understands that there needs to be cuts made in addition to the taxes being raised- but this was an agreement that Obama and the democrats failed to agree to.
Several members of the United States armed forces have had their hours and benefits reduced already, and it is speculated that there are more pay cuts and job losses to come. As a result, experts had projected that the economy would be quite shaky throughout 2012 as people obviously are not going to run out on major shopping sprees every month when they feel less secure than ever before about having a job tomorrow morning.
Surprisingly, however, the reports are in and they indicate that consumer spending is up by 2.5 percent during the first quarter of 2013. However, this mark is still below the three percent increase that many economists would have normally projected, which may not be good news for the American economy.
And, to make matters even worse, other experts have reported that there may be a major catch to why retail spending is up by the 2.5 percent it is. They say that towards the end of 2012, many people would notice that shelves were quite sparse at many retailers due to a low back stock of inventory. However, in 2013, they have noted that these retailers have plenty of stock, which could potentially indicate that sales are not actually up but that these same people would have made their purchases in late 2012 if they were unable to take the product home that day.