Yale’s Shiller: To Boost Economy, Shop ‘Til You Drop

Tuesday, 17 Jan 2012 09:07 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Economists often view savings as a virtue and spending as a vice. But not in this period of economic stagnation, says star Yale University economist Robert Shiller.

“For now, we must pin our hopes for a robust recovery on the willingness of millions of consumers to spend substantially more,” he writes in The New York Times.

Actually, Shiller would love to see the government do the trick with another fiscal spending package, but that’s obviously not going to happen with Republicans in control of the House.
_________________________________________________________

Inside the World’s Greatest Retirement Lie

Study reveals disturbing truth: Millions have been victimized by the very people they elected. Learn the Truth, See the Details. 

_________________________________________________________


Shiller points out that consumer spending has been framed in terms of patriotism, and not just by Democrats.

For example, shortly after the Sept. 11 terrorist attacks, President George W. Bush urged Americans to “Get down to Disney World in Florida. Take your families and enjoy life, the way we want it to be enjoyed.”

Consumer spending surged in October 2001, helping to lift the economy out of recession.

The recent news on consumer spending isn’t particularly encouraging. Retail sales rose only 0.1 percent in December, slowing from November’s 0.4 percent increase and lagging economists’ expectations.

“A lot of the euphoria around the holiday shopping season was misplaced,” Neil Dutta, an economist at Bank of America, tells Bloomberg.

“The weakness in December implies that the handoff into the first quarter was weak. The savings rate is going higher, and that’s going to be a headwind for consumer spending.”


© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Manage Your Healthcare With Persistence

Wednesday, 08 Oct 2014 09:06 AM

I've read a lot of stories about how you're supposed to manage your own health care, produce it even, as I've explained  . . .

President's Safety Above Politics

Friday, 03 Oct 2014 16:10 PM

Try this test. Pick up your local paper and tell me: How many of the issues that people in your community are concerned  . . .

Rest in Peace, Mom

Wednesday, 01 Oct 2014 09:28 AM

Today would be my mother's 88th birthday, which is not so old, but my mother seemed very old eight years ago, when she d . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved