American Spending

http://money.cnn.com/2015/02/08/investing/stocks-market-lookahead-consumer-spending/

Recent events have made it clear that the US economy is seeing better days. Oil price have risen by 7%, and 257,000 jobs were added in January which was more than expected. Despite the new faith in the economy the American consumer is still not spending which could affect the stock market and the growth of the economy.

The American consumer might be frugal because of fear of another recession but there might be other issues that is holding them back. For example, there might be job insecurity because of jobs going to guest workers. Moreover, because of the widening gap between the rich and the poor, consumers after all may not have as much spending power as all the money is in the hands of select few. This increasingly seems to be the case since politicians are actively discussing income inequality, and proposing “inclusive capitalism.”