from HILSENRATH’S TAKE: A LETTER TO STINGYAMERICAN CONSUMERS
Dear American Consumer,
This is The Wall Street Journal. We’re writing to ask if something is bothering you.
The sun shined in April and you didn’t spend much money. The Commerce Department here in Washington says your spending didn’t increase at all adjusted for inflation last month compared to March. You appear to have mostly stayed home and watched television in December, January and February as well. We thought you would be out of your winter doldrums by now, but we don’t see much evidence that this is the case.
You have been saving more too. You socked away 5.6% of your income in April after taxes, even more than in March. This saving is not like you. What’s up?
We know you experienced a terrible shock when Lehman Brothers collapsed in 2008 and your employer responded by firing you. We know stock prices collapsed and that was shocking too. We also know you shouldn’t have taken out that large second mortgage during the housing boom to fix up your kitchen with granite countertops. You’ve been working very hard to pay off this debt and we admire your fortitude. But these shocks seem like a long time ago to us in a newsroom. Is that still what’s holding you back?
Do you know the American economy is counting on you? We can’t count on the rest of the world to spend money on our stuff. The rest of the world is in an even worse mood than you are. You should feel lucky you’re not a Greek consumer. And China, well they’re truly struggling there just to reach the very modest goal of 7% growth.
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Updates: Dear Mr Hilsenrath and your Central Bank Team,
This is Joe from the disappearing Middle Class in America. You asked me the other day to drop you a note if I felt that something was wrong. What I’m having trouble with is “why” you’re asking me if anything is wrong! ?
So let me explain.
Regarding the weather, as you stated, the sun shined in April. It was also overcast some days some places, rained a few spots here and there, was nice quite a few days and even got dark on time, most evenings. And the Commerce Department is spot on that my spending didn’t increase any adjusted for the inflation that you all keep telling me isn’t there. Have you tried to buy some hamburger recently or do you just eat out on a corporate credit card? The price of a pack of spaghetti has doubled over the past 3 years. Me and Mrs. J along with the kids kinda like spaghetti now and then and the Mrs. even made a great Bolognese sauce, but the hamburger got too expensive as has the spaghetti, so we had to cut back. So you're right, we did sit at home and watch Dancing with the Stars a lot. It's what we can afford. So, I really don’t get what you guys mean by those “winter doldrums” because things have gotten worse independent of the weather. The weather's had nothing at all to do with it.
And talking about worse, you’re right. I did get fired in late 2008 from a high paying salaried job with benefits when the economy dumped due to the Lehman Brothers shock. Since then I’ve been holding down a part time greeters job at Home Depot with no benefits. I even took on a second part time job with no benefits at another place because I was getting bored watching television all day. Plus, we could use the extra money as our savings has been depleted. And we’re very worried about our health and the cost of healthcare is skyrocketing. But I guess you probably have a health care plan paid for by the Wall Street Journal. Why, feeling particularly liberated, Mrs. Joe's even picked up a couple of part time jobs, as well. “Arbeit macht frei" seems to have taken on a whole new meaning these days for whole bunch of us out here.
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