Skip to comments.Gas Prices Drive Consumer Spending Higher in August
Posted on 09/28/2012 4:06:32 PM PDT by tobyhill
U.S. consumer spending rose in August by the most in six months as households stretched to pay for higher gasoline prices, according to a government report on Friday that pointed to lackluster economic growth in the third quarter. The Commerce Department said consumer spending increased 0.5 percent after an unrevised 0.4 percent gain in July. Last month's rise was in line with economists' expectations. Consumer spending accounts for 70 percent of U.S. economic activity and the second straight month of increase mostly reflected higher gasoline prices, which rose 28.2 cents per gallon last month, though automobile purchases also helped.IO
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I’m listening to Levin show. And the news reader comes on and says that the consumer confidence today hit its highest level in 5 years. WTF?
We are on the verge of heading into another recession, and consumers are more confident than ever?
This is all a coordinated onslaught of propaganda. Polls, narrative, studies, revised jobs, etc. It’s hard to keep up. I cannot believe it.
Remember, the same pollsters that give you the political polling data give you the “Consumer confidence” numbers.
One of two things is going on.
Either the polls are massively wrong or the USA has fundamentally transformed itself into just another
European style socialist democracy where voters consistently vote against their own economic interests for things that make them feel good.
Remember back in 2007 - every night the evening news would lead off with how many killed in Iraq and how high gas prices are??
Now? Not a peep about record gas prices and not a mention that 70% of US’s casualties occurred under Obama’s watch.
Every extra dollar you spend on gasoline is a dollar you do not have to spend on consumer.
When the price of gas goes down the consumers will buy other things with that money.
That isn’t so hard to figure out, but Obama wants us to pay the same as they pay in Europe./
Consumer confidence surveys -- even if they're accurate -- tell us absolutely nothing. Consumer spending does not drive the economy. It's higher now than it was in 2007 but, obviously, it isn't helping matters.
Saving and investing create economic growth. Every human alive wants to consume -- it's just natural. Not every human, though, saves and puts those savings into expanding businesses.
You'll notice we never hear about any "Investor Confidence" surveys. The Keynesians don't care about investors or savers and they wouldn't like the results anyway.
I seem to remember Obama saying during his first campaign he wouldn’t mind seeing gas prices go to 5 dollars or more a gallon
Look at the Halloween isles. They’re understocked. Retailers already know it.
Think about it - "Consumer confidence" is measured by folks spending more. Higher gas prices demand higher spending so they lick the boots of Zero and call the higher spending "increased consumer confidence".
As you may recall, Obama sent the big V8 sedan packing in favor of a Ford Escape Hybrid when he began his campaign for the presidency.
Think of what Obama "feel good". Now, the working poor barely afford gas to get to work and the younger drivers are less likely to afford anything reliable or road worthy. No one is better off.
Yes, if Romney could only get the gas price down by $1, it’d be a big relief.
Well, at least birthers can't complain about the title card...Would Detroit really complain leasing an expensive car? Now that they have collectors seeking their cars in common, they should be able to have those talks...
A copy of the title showing the vehicle was in his name is now added to the photo section.
Obama received a lot of negative media attention in Detroit & from Auto Makers regarding his gas guzzling V-8 Hemi.
Also, please understand that the $1 million dollar starting price is not a joke: ** The President of Iran's ancient Peugeot fetched £1.5million at auction - only because it belonged to Iran's president Mahmoud Ahmadinejad. Ahmadinejad drove the 1977 white sedan when he was the mayor of Tehran and put it up for sale on an auction site last year