Consumer spending plunges to 3-year low
Why is consumer spending that important? Why has George W. Bush been giving $2000 tax cuts to all of us -- and asking us to go spend rather than save that money, or worry about the terrorist threats that are going to come down on our heads in our office buildings (the latest alert) or public places -- so that we can contribute to consumer spending which is a whopping two-thirds of all economic activity. But that doesn't create jobs, does it? Especially if we're buying all these goods coming from China and Japan and India?
There seems to be a White House disconnect in logic. But then what else is new? According to this AP story in the New York Times (registration required):
The Commerce Department reported Tuesday that consumer spending dropped by a sharp 0.7 percent in June from the previous month. The retrenchment came after consumers splurged in May, ratcheting up spending by a strong 1 percent.
...Consumer spending accounts for roughly two-thirds of all economic activity in the United States. Thus it plays a key role in shaping an economic recovery.