Article Source: msnbc.com
from:msnbc.comRise led by strong auto sales, follows two down months
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It's a classic catch-22 scenario, isn't it? Retail sales can't pick up until employment numbers get better and employment can't improve until sales pick up.
"That's 5.1 percent higher than in July 2009. Last year auto sales fell to the lowest level in three decades."
So are we at 1983 levels instead of 1978 levels?...hooray.
No surprises here. The economy is sputtering at best. I totally agree with the first post, but no one is working on the solution for that. That is the true disappointment here.
Why don't our "leaders" get it--jobs, jobs, jobs will pick up the economy! Bring back the CCC and the WPA--we could fix our sagging infrastructure and people would have jobs--I for one would like to see some tangible results for my taxes!
their too busy Counting Numbers and Statistics, jobs is Not of their thinking..that's the Horrible Truth !!!....
While there may be political and economic issues that are in play here, from my experience the drop in retail sales just might have something to do with what they are trying to get us to buy. We are certainly not wealthy but our income, like many others' has not been affected by this recession so we do have some available cash to spend. For several years now, the stores that carry women's clothing must think we all want to look like 15 year old bimbos. If you are over the age of 50 you cannot go into any women's clothing store and buy clothing suitable for a dressy occasion that does not have a very low cut neckline, wild colors, flowing yards of fabric draping your body. You cannot find anything suitable to wear to a job interview or to church. Since they are trying to please women from the age of 15 on up I realize it is difficult to please everyone, but really, there should be something for those of us who are older too. I go shopping and always come home with nothing. I would not wear most of what I see if they were giving it away so I will not buy it no matter how far they mark it down. If I am lucky enough to find something, then of course they don't have my size, because some other woman who desperately needs clothing has snatched it up first (lucky her!). All you have to do is walk through stores right now and see all the racks of clothing marked down 80% and still no one will buy it. It should tell them something, but every year, every season it's the same old thing.
Some people still do have money to spend but will not buy what they are trying to sell.
I have the exact same problem, only I am 30. Walmart is the worst offender.
Amen to that. Even when I was in my 20's and very slim I couldn't have worn most of the stuff out there, because I look my best in tailored clothes. Most of the stuff now looks like you are draped in someone's old chiffon scarves, like my daughter used to do when playing dress up. Even in a casual workplace it is hard to find something between teen fashions and Grandma clothes. I don't want to show off my upper arms in tank shirts or cap sleeves and stretchy knit shirts are not flattering if you are not extremely firm. Remember a couple years ago when every dress in the store looked like a feedsack?
Costs of goods went up.03%, sales of goods went up .02%; that is a decrease , read the article, it is all double-speak, it actually Say's, using their numbers, that things are getting worse!
Saxon:
The better way to judge real retail sales is by comparing sales tax revenue, adjusted for increases in tax rate and inflation/deflation.
Bottom line: you are correct, things are getting worse.
It is funny to hear a woman compalin about the selection when 2/3 of most of the clothing stores I"ve been to are for women. Try and find clothes for a man.
I wanted to buy a pair of gym shorts but could not find anything that didn't hang down past my knees. Do they really believe that everyone wants to dress baggy like inner city kids?
First, the kids would wear their pants without a belt and let them sag down. Next they added more cloth so they could look like the were sagging down but still be all the way up.
Doesn't anyone realize how stupid this looks?!! Shame on the stores for not offering anything else.
Someone has to teach "special math" - where only certain "types" count, and others do not, to understand these "growth" numbers!
Funding the unemployed with benefits, and growing government, with money a country does not have, is a "stimulus" and people who no longer are searching for work or ran their course and are out of "benefits. or are "underemployed", are not considered among the "unemployed" = special "government math" to sound/look good?
If a country loses 20% last July, then, only loses 10%, on top of that previous loss this July = growth!
It's great to see Obama's "Recovery Summer" in full swing. It looks like the consumer is really impressed with how well the economy is doing under Obamanomics. LOL
My customers don't have the money it takes to use my services lately. I've been hard at it for forty years with lots of satisfied customers always coming through the door. Up until this spring and now summer. I have no competition for 30 miles around, so i know it's not that, they've just stopped spending. I believe the phrase is "It's the economy stupid". It a gonna be cold and even slower this fall and winter i fear. The only warmth will be to see the millions in Washington on the 28th of August. Civil disobediance!!! Take a sleeping bag and don't move. Take back America and the economy.
Blame Obama, and the Republicans are the answer, neither party is and look in the mirror if you keep spending money at Wal Marts or franchises that are owned by one family in a town most of the time. We are all at fault. Americans believe the phrase, live better, save money. shop Wal Mart or other box stores.
William Z
Very good point. Americans want to have everything that is out there and they want it cheap. Adn if they can't afford it they borrow (use credit cards) to buy it. No wonder we are in the trouble we are.
Yes, but our politicians are telling us it is our duty to go out and buy stuff we don't need and can't afford, in order to end the recession (depression). That is what is really scary, that we are depending on people spending money they don't have to cure the problem.
It's Soooo refreshing to see such an article; concise, to the point, truthful and poignant. No B.S. about 'consumer sentiment' and other blather - note the final two sentences, and insert them in place of the lines and lines of bull we've been fed for ..... HOW many months now?
The Fed Reserves and Corporo-Government wedlock is still in it's honeymoon phase after - HOW many years now? With no American manufacturing coming home and more and more incentives for American Co.'s to continue to offshore, what was expected?
As long as our Representatives that are our government continue to be bought off by the Fed's International Group of Wankers and self serving monetary gains that not only promote Globalization of Our economy (to our detrement, American Detrement) to their elite benefit and destroy one nation's economy (namely ours) to profit from the said 'bogus globalization of economies' to distribute tossed bones to exploit 3rd world nations under the guise of 'necessary free trade and international dependency' but we continue to allow it, believe it and sanction it ....
we're going to be the next 3rd world nation. American based economy for the benefit of all Americans; America first and foremost, people. Don't buy into the black and white 'that's protectionism' crap.
It's summer...completely shocking that gas was on the upswing. Next, August will 'be a rise in consumer sentiment' since school is starting.... fricking unbelievable. Guess China will be happy.... they're MAKING all our school supplies.
We pretty much already are. We are way behind Europe in everything that matters -- especially core Europe, led by Germany and France. What Bush sneeringly called "Old Europe."
And as for quality of health care, we're behind many 3rd world countries -- including Morocco, where they don't even have hot water in their homes.
Hestia - you need to stop reading the political rhetoric. We have the best health care in the world in this country. Not everybody has access to it, but people from around the world come here for treatment rather than their own countries. You can argue the cost issue, but the quality of treatment is top notch.
Peter, do you think that will change when Healthcare Reform hits?
Lynn, those with money will always be able to get excellent care. The rest of the system will suffer because there will be a lack of physicians to treat those at the lower end of our economic structure. Increased rationing in inevitable.
We do NOT have the best healthcare in the world. We have the most technology, which does not equate with the best health outcomes. Americans should be outraged over this! We pay many times more for our healthcare than those in other industrial countries. We are also the only industrialized country that does not provide healthcare for all citizens. Why is our infant mortality rate higher than some "third world" countries? Why are our health outcomes worse than those with one payer systems (e.g. Scandinavian countries, Canada) who provide healthcare to all citizens? I have done work with the healthcare system in Canada, and the stupid fearmongering propaganda that the Canadian system is so bad is a bunch of crap! They have way better health outcomes at a considerably lower cost. Maybe they don't have instant access to some of the elective high tech procedures, but they have a much better handle on prevention. Many countries do not have the incredible technology we have, but with good prevention, much of it would not be needed (although, if you follow the $$ you will understand why the US is dependent on all the high tech stuff). In many cases with our technology and medications, sometimes the treatments are worse than the illnesses! If we took a lower tech approach and really stressed prevention, the health of our nation would be much better. Good health outcomes require work by both patients and providers, and is not instantaneous. Americans seem to think there is a magc pill or procedure that will instantaneously make people well without having to make the lifestyle changes necessary for good health.
Absolutely Dead-on correct! And the "fearmongering propaganda" is financed 100% by the drug manufacturers, insurance companies, and medical equipment manufacturers in this country.
Don't believe all the stats people throw out as gospel. For example, when looking at death rates, they include both murders and deaths in auto accidents, both of which have absolutely nothing to do with our health care system. Our murder rates dwarfs all other major economies, and most of them are young. We also have the highest death rates from MVAs, and it is one of the leading causes of death for children. These two are the reason why our longevity rates don't look as good as other countries. We also count deaths at birth different from many countries. They frequently log a "stillbirth" while we log it as an infant death.
Part of the reason the US does not have the best Health Care in the world is because Americans are obsessed with "new" and "cutting edge" treatments. Just because some thing is new, does not mean it is better.
For example, the most effective anit-psychotic medicine was discovered in 1959. Unfortunately, it is not perscribed, because people believe that new and more expensive means better. This is not the case, and the government/medical associations allow pharmacutical companies/medical supply companies to brain wash doctors into prescribing new treatments that are not as effective as older ones.
There is a new DNA based cancer treatment developed by a pharacutical company. It costs $100,000 per dose (more that one dose is required), and the company says it increases the survival rate by 80%. People with cancer are being scammed, because what the comany doesn't tell you is that it only extends the patients life by about 8 weeks. What a great drug!
Political rhetoric? You mean like studies conducted by the World Health Organization?
Here are some FACTS for you, from me -- a person whose job involves daily monitoring of the economies of Europe and the United States:
The European Union is the largest, wealthiest trading bloc in the world. It produces nearly 1/3 of the world's economy -- as large as the U.S. and China COMBINED.
So-called "Socialist" Europe has MANY more Fortune 500 companies than we do. They routinely capture most of the top spots in economic competitiveness ranked by the WEF (World Economic Forum).
France has the highest ranked health care system in the world, while we rank #37.
Europe is implementing entire new industries for green design and sustainable technology in everything from skyscrapers to toilets. Consequently, their ecological footprint is about 50% of the U.S.
Year after year, Europe has steadily increased people's personal wealth and security. Europeans enjoy the highest of living standards and the most economic security, with health care for all, paid parental leave, affordable child care, paid sick leave, free university education, retirement security, elderly care, unemployment compensation, vocational training, efficient mass transportation, affordable housing, a shorter work week, an average of 5 weeks paid vacation plus holidays, and more.
If you feel that mouthing patriotic platitudes is more gratifying than enjoying one of the highest standards of living and quality of life in the world, then bully for you. But don't try to hand a load of crap to me, because it's my business to know the facts.
Our heathcare is ranked 37th by the UN because we do not have a Socialist system. Removing the socialist part which has nothing to do with health CARE, we are ranked number one. Canada, for example, has 30% higher Cancer death rate.
Norway, Sweden, and Finland (so-called "Socialist" countries), have the best cancer survival rates, not the U.S.
As for comparison with Europe, the U.S. is better so far as solid tumors go, (except for stomach and testicular cancer), but the gap is narrowing and there is no significant difference for soft-tissue cancers.
The US shows a better survival rate for heart attack, too. But careful research raises questions because the U.S. keeps people alive on machines. When the plug is finally pulled, death is often not attributed to myocardial infarction on the death certificate. So researchers are finding it difficult to make precise comparisons.
But for sure, if you believe only the rich deserve quality health care, the U.S. is your place to be.
This is all related to the bailout. If the government hadn't bailed out the banks, they would have been forced to negotiate with consumers to get the liquidity they needed. Meaning they would have adjusted your payoff amount down for an immediate payment. This would have freed many consumers of the debt burden they are now carrying. Which is what is killing consumer spending.
The government didn't want to do this because who would have lost? The rich investors. Don't be fooled it was a wealth Wall Street bailout not a main street bailout. As I said when this first started no matter the stimulus or bailout, it will not work until the debt burden is relieved from the consumer.
Our current economic situation has nothing to do with the TRAP loans which have been repaid, with interest. Most of those receiving the loans really did not need them. It was the system that had broken down, not the banks themselves. Most of the banks were able to raise additional capital in the market, repay the loans and become profitable again. The value of these banks is certainly considerably lower than they were 3 years ago, but they are on the road to recovery. Consumers will have to do the same thing, pay down their debts and live within their means. The banks did not get a free ride for their excesses and neither should those consumers who either ran up too much debt on credit cards to keep up with their neighbors, or who bought homes as an investment that they could not afford and now are hurting because that investment did not pan out. Next time let's hope they look at a home as a place to live.
Peter - Well done - you said it all. There is no recovery to the days of barrow, spend and live like fat pigs. So everyone will have to get used to it. No more $30K Harleys. No more $75 / hr union wages. No more Bama – that’s the good part.
George; You're comment about Obama makes absolutely no sense..."Borrow, spend and live like fat pigs" is the Republican mantra...it's their way of life. 95% of those guys buying the $30K Harleys ARE REPUBLICANS. It's Reaganomics 101, and it's exactly what got us in this mess. I totally agree that there is no recovery to those days coming (and that's a good thing)...but then to turn around and blame Obama for the recovery being too sluggish is totally contradictory.
Peter
You don't understand how the banking system works. By law they have to maintain certain ratio of liquidity versus there outstanding loans. This is why people starting having there credit limits lowered at the out break. The TARP bailout was to make so the banks wouldn't have to settle debt to raise capital as my statement above said.
The banks would have been fine anyway. The FED made sure of that when they lowered the rate to 0%. Banks can now borrow at little to cost and are still charging people 12% to 30% for credit cards. In banking this is a HUGE spread. Think back not long ago when banks survived on a spread of only 5%.
I'm not advocating everyone should get a government check to pay of their loans. But we shouldn't have awarded banks with bad lending practices. What would have happened is banks would have found borrowers who had been responsible and had liquidity and offered them the option to pay off or down their debt at a fraction of the cost. This why people like me who have worked years in commercial lending are down right angry at the government for the bailout.
Why is it that everytime there is something positive about the economy or anything for that matter the media downplays it and buries the story. "Modest" rise in retail sales - well consumer spending is where its at - if people - who can - start spending again the economy will begin to kick in.
Now if retail sales had a "Modest" drop in July the headlines on MSNBC's front page in bold and large would have been "Retail Sales continue massive slide as economists predict double dip recession."
No matter your polical bent the Media has way too much power. The only reporting is on negative, doomsday 'information" and too often unfortunately, the power of suggestion is what shapes the future.
The sad truth is the media makes the news they don't report it.
Because dear, there IS nothing positive about the economy. We are in deep deep deep trouble and pretending it's all going to be okay is such blatant nonsense that even the media doesn't have the gonads to go there.
If you were to take gas prices out of the pucture it would have been a loss.
Gallup shows that early August back-to-school spending will need to surge to match last year, and last year was pathetic.
Tom, I am confused! Now "sales" are up because gas prices are up! I always thought( economics 101 class) that a "sale" was when an item moving off the shelf- not the cost (price) of that item going up! Damn is obama changing the rules of economic 101?
I am sure the revision 2 months from now will be allot worse.
Oh you are so right with your thoughts and comments on that. Unempoyment is still in the 14% solid in northen indiana with no signs of change. I guess we got the change Nobama wanted. High unempoyment and tens of thousands lossing their homes. Cardboard houses here we come.
According to the news the other night, one in every 375 homes in the U.S. has now receieved a foreclosure notice and the number of new unemployment benefits applications has also jumped. Where is the recovery these so called experts are talking about. I think it is time to start calling this situation what it really is......a Depression. Or is it the experts do not want to admit the truth?
This story does little to help us as individuals.
What we should focus on is what this administration is spending like a spoiled teenager and demand they report monthly on what cuts they are making.
I find it infuriating when this administration uses every government giveaway as a victory speech sighting how ' this is helping the American people.' If you want to help the American people then stop throwing our money down a black hole.
What are you saying, America is a black hole?
No, just a lot of black holes.
They just don't get that in Washington. DC. They voted themselves a 33% payraise, while the rest of America scrimps and saves just to pay for groceries, not even thinking about buying "luxury items" or much of anything else....
Spend,Spend,Spend is all Obama and the Congress have to say...
ok just a couple years ago if a gas truck jacknifed gas would go up huge. anything and especially more consumption made prices soar. so now with bps huge cleanup cost and more usage why are we not paying 5 dollars a gallon. explain this one to me cause i don't get it. was i just being overcharged before thru some pricing conspiricy?
lol, a price conspiracy thats been goin on since the mid 70's. shortages caused by the us leavin vietnam
That's what reparations and redistribution is.
This "recovery" is just another figment of liberal imagination.
Yipee! The economic collapse has been stalled off just a tad bit longer. That will give some of us a little more time to stock up on food supplies, sell all our assets and get better prepared for the inevitable....
invest in gold, silver and ammunition and remember the golden rule 'them that has the guns gets the gold' lol
So what, far to many products are made abroad by multinationals that exploit cheap labor while our bought off lawyer politicians allow them to do with no penalty due to money influence. Get an education is the answer when many still will not find a job due to more products made abroad. Not everyone can be educated or all be doctors or lawyers, etc. Without a good paying manufacturing base with good pay, $7.00 flipping hamburgers at McDonalds or Wal mart is not going to pay taxes in the first place since just chump change to barely survive. Enjoy the downfall of America being sold out. Better get ready for the guns to come out when unemployment run out or marching on Washington to say enough is enough.
What looks like cheap labor here is actually a middle class income in many other countries. In spite of what many believe, the U.S. continues to have the largest manufacturing output in the world, with China as a close second. Just yesterday Caterpillar announced they are building a new manufacturing site in Texas. They pay good wages and benefits and yet are able to compete in a global market, exporting many of their big earth movers to other countries. Boeing sells commercial aircraft around the world that are built here. We can and do compete in a variety of manufacturing sectors. But we cannot continue to make sneakers, flip-flops and tee shirts in this country and sell them around the world.
We had a 4.6% unemployment rate just before this last recession hit, a full employment economy. We, and many other countries, lost jobs in the last few years because of the recession, not outsourcing.
There are some very open and insightful comments developing on the newsvine this morning. Count on MSNBC to be changing it out very soon as it's not very complementarty to the administrations attempt to control our words and thoughts. It seems to be a slow news day from some of the titles of articles being featured. It's nice to see they have one that's current and important. Write on!!!
Many schools started at the beginning of August, so there was school spending in July. Gas prices always go up in summer and although vacationing was down this year it was not extinct and many did celebrate Independence day. Not a big surprise.
Nothing really to celebrate, just life continuing its yearly path.
All hail "The Summer of Recovery"!!!!
Yep this "Recovery Summer" is really moving along. Over 400,000 people applied for unemployment benifits last month. If we recover any quicker we will all be on unemployment or in default of our homes. Yep Mr. Obama if this is a recovery I would hate to think of what a non recovery would look like to you. This whole government in Washington needs to take off those rose colored glasses they are wearing and see the real world.
Funny how the people who are lecturing others to "take off their rose-colored glasses" or "wake the hell up" or "get your head out of the sand" all think that this mess just started in the last year and a half.
Yes, the economy sucks...NEWSFLASH; It's been that way for at least 3 years now. As far as "All of us being unemployed and in default of our homes", that would have already happened without the stimulus programs. It may still happen. If there's a problem with the stimulus spending, it's that it may very well be a case of Too little, Too late.
"July's increase in consumer prices may assuage concerns, raised in recent weeks by some Federal Reserve officials, that the economy is moving toward deflation. Deflation is a widespread and prolonged drop in the price of goods, real estate and stocks. It also reduces wages and can make it harder to pay off debts."
I find this part of the story very disturbing.
I am confused! Now "sales" are up because gas prices are up! I always thought (my college economics 101 class) that a "sale" was when an item moving off the shelf- not the cost (price) of that item going up! Damn is obama changing the rules of economic 101?
Next month it'll be "Adjustments show that last month wasn't as good as estimated"; just like yesterday's about june.
Yep again, the economy is on the rise caused by the increased cost of gas, food, taxes, medical insurance and all other cost of living expenses except interest on borrowing if you are affluent enough to buy big ticket items. You may not see the silver lining in the clouds due to the bad economic air, but if you live high up on the hill with the shinny palaces of the politicians and the progressive media life is always good in their eyes. So keep eating cake.
The bottom line is people are just not spending like they used to. We are living in times where it is important to be frugal. I was at the mall the other day and saw very few people carrying shopping bags. Everyone was packed up in the food court!
I always find these reports fascinating if a bit jaded and colored up too fit whatever political party wants use it for their means and agenda,according to everybody fixing economy would happen if I went out and went on a shopping spree,because when you read this article that's what its saying in a backdoor way main street an appliances home good clothing and other stores would be helped and fixed if shopped more.... How if I or you don't need new cloth's,lumber,or new stove or other appliance why am I going to go out and spend $$$ on it?Main street I'm sorry people has been dyeing for years now way before this economic crisis,the stores that are staying in business in my town are the ones who are moving off of main street into the new buildings and strip mall in town,there still run by the same people and families just relocated.... Also the economy has had certain times were people hire and spend more.... All of that aside we do need to support our local industry's ,and yes I agree Wall-mart needs rained in and brought under government and the better business bureau attention and a full investigation done of their practices for many reasons.
Economic "activity" measured by the rise in gasoline prices?
This is another perfect example of why Wall Street and so called government "index" and these mis-nomered "journalists" are totally out of touch with reality.
I would like to slap the writer who wrote this upside his deluded head.
How is being captive to the price fixing and collusion of the organized crime sydicate that is the oil industry any sign of econmic activity?
I read a lot of posts on here about people angry over the amount of goods imported to the US. Yet everyday I drive past a WalMart on the way home and the parking lot is packed. I guess that todays' good deal is more important than our future for most people.
Yep that's about right. I've been anti-Wally world for a long time. I hate to admit I've shopped there, but only when what I needed was not found no where else. But it still got under my skin and I hated the fact that I gave in while I should of waited.
I also have been asking everyone I know to please change their voter reg. to either independence or non-affilated so that they can choose who they vote for instead of a straight line voting. I know that whoever goes in will still use their power to help themselve whoever possible, but this current two party system and the power struggle is killing America right now.
What we need is for very strong anit-bribery laws for all goverment officials. I mean laws that will take away any money the get, prison time sever enough to discourage the thought of any time of corruption. A law where if a corrupt offense or bribe results in a death then death pentalty is mandatory.
Last, downsize the goverment. Remove the waste, not talk about it, do it.
If you purchase the exact same product at another store, that product is manufactured at the same place as those at Walmart. But of course, you get the priviledge of paying more for it.
You are probably right Peter. However, maybe you can find a similar product at a different store that is made (even patially) in the US. Wouldn't you rather pay a little more today than to have no future for us?
I've had an idea that might spur some made in the USA spending............ when you go into a store ask "Where is the made in the USA section?" If they reply that they don't have one, turn around and walk out. If enough people did that, I bet stores might get the hint.
I keep thinking that a "Made in America" store could go over well, but I already have a small retail business and I don't want to take on more. I do look for American made, and I have to put in a plug for Menard's here - their weekly ad states which items are made here and they even have some sales where all the items are American made. I buy a lot of clothing etc at thrift stores, at least I avoid being the initial buyer.
I shop at Walmart all the time, mostly for food items and personal care products. The vast majority of food items and most of the personal care items are made here in the good old USA. Of course many of the personal care items, like lotions and creams, are made and packaged in very high speed manufacturing lines, so the number of workers needed is much lower than a couple decades ago. That is true of auto assembly lines as well. Such is the price of innovation.