I’ve noticed several CEOs, political pundits and so-called economic experts saying they’re confused as to why Americans are so down. Consumers should be out buying stuff, they say, for the economy is humming again. Just look at the key indicators: GDP is growing, corporate profits are high, the stock market is soaring, jobs are being created, the unemployment rate is steadily dropping, and people’s disposable income is up.
Yet, as the CEO of the Container Store recently grumped, consumers are in a “retail funk.”
That’s so cluelessly wrong, sir. Consumers (unlike you platinum-card members of the CEO Club) are in an income funk, meaning we have very little of the green stuff coming in. The bottom line is that Americans are down, because … well, because most of us are down. Yearly income for the typical household is $3,300 lower today than in 2007, when Wall Street barons crashed our economy. Or look at what’s happened to the typical American family’s net worth. It was nearly $88,000 10 years ago, but today it’s down to $56,000 — that’s more than a one-third drop, even though we’re told that America is enjoying “a strong recovery.”
The lesson for the Powers That Be is that there is no species called “consumers.” Rather, that creature is just a worker with a decent-paying job. Eliminate the job or shrivel the pay and — poof! — consumerism goes away.