Consumer spending is 70% of American GNP. That's a lot and it is what keeps the US economy humming. And consumer spending has its ups and downs. When it is up, things are good all over. When it is down people are thrown out of work, business profits disappear and gloom covers the land. The financial pundits at least understand this, and they have devised theories to account for swings in consumer sentiment and even indexes of consumer sentiment that claim to predict consumer behavior.
Most things consumers spend money on are discretionary. They don't have to buy a new car, at least not this year. They can postpone buying a new house. They can put off home maintenance projects like new siding, remodeling the kitchen, or reroofing. They can skip back to school buying and send the kids to school in hand-me-downs. They can put Santa in the closet and put the Grinch in charge of Christmas buying. About the only things consumers absolutely have to buy are groceries, utilities, and the rent. When consumers feel stressed, they cut back spending as much as they can, which sends the larger economy into a tailspin.
A powerful driver of consumer spending is the job market. If the consumers fear loosing their jobs, they will cut back everywhere they can. If they feel their jobs are safe and secure, then they are willing to spend on stuff. Obama and Obamacare made everyone fear layoffs which kept GNP growth down around 1%. With Trump everyone feels secure in their jobs and we have GNP growth up around 3%.
Not to panic the American consumer. Bad things happen if you do.
This blog posts about aviation, automobiles, electronics, programming, politics and such other subjects as catch my interest. The blog is based in northern New Hampshire, USA
Tuesday, December 31, 2019
Sunday, December 29, 2019
Effective new car advertising
They been running this one on Fox News several times a day. Beige SUV pulls up a steep driveway and stops at the front door. Scene has the color canceled out for a nice arty black and white look. Woman gets out, opens front door , enters her house to find it is a mess. All the children are in the living room playing mess making games. Room is super untidy. Woman backs out the front door, gets back in her SUV and reclines the driver's seat. Closes eyes.
Message to us car buyers, our SUV interior is more comfortable than your child infested house. And, you Mom get little pleasure from your children and you don't like keeping house. So buy a Lincoln SUV to get away from it all parked in your driveway.
I think it might have been a Lincoln Navigator but they never mentioned the product name on air.
This ad is REALLY going to motivate me (a guy) or any chick I ever knew to buy a Lincoln Navigator. Or any other Lincoln SUV.
Can you say "Turnoff"?
Message to us car buyers, our SUV interior is more comfortable than your child infested house. And, you Mom get little pleasure from your children and you don't like keeping house. So buy a Lincoln SUV to get away from it all parked in your driveway.
I think it might have been a Lincoln Navigator but they never mentioned the product name on air.
This ad is REALLY going to motivate me (a guy) or any chick I ever knew to buy a Lincoln Navigator. Or any other Lincoln SUV.
Can you say "Turnoff"?
Thursday, December 26, 2019
Bipartisan means everybody gets lots of money.
The house needed both Democratic and Republican votes to pass the federal budget and avoid yet another federal government shutdown. So, the Republicans got a big boost (maybe $100 billion) in defense spending, and funding for the Mexican border wall. Democrats got $75 million (chicken feed really) for a gun control study group. At least that is all I have heard about. I daresay a good look at the budget will find more spending and a good helping of pork. But the newsies are all hypnotized by the Great Impeachment Show (GIS) so we don't really know what all got slipped into the humongous federal budget. Plus the entire budget is so big and complicated that the newsies would not understand it. Few newsies can do addition, subtraction, multiplication, and division, even with a smart phone to help out.
We should not be passing great big fund everything bills. Those are just to big and complicated for anyone the understand what is really going on. We ought to pass one funding bill for every Federal department, defense, state, treasury, homeland defense, education, health and human services, and so on and so on. The smaller one department spending bills are small enough for one person to understand and tell us voters what is really going down.
We should not be passing great big fund everything bills. Those are just to big and complicated for anyone the understand what is really going on. We ought to pass one funding bill for every Federal department, defense, state, treasury, homeland defense, education, health and human services, and so on and so on. The smaller one department spending bills are small enough for one person to understand and tell us voters what is really going down.
Friday, December 20, 2019
Not impressed with Democrat debate
Timing was not ideal, coming as it did while the smoke was still settling from the Trump impeachment. They were all eloquent, spoke well (except maybe Biden). They all supported far left ideas, of the more free stuff sort. Free college, forgive college debt, medicare for all, and a bunch of other stuff that I forget. Some of 'em even talked about new taxes on "the rich" to pay for all that free stuff. All of 'em claimed that the US economy was unfair to just about everybody while the Trump boom is in full swing. At least the PBS anchors doing the questions were pretty good, the questions were tough and relevant.
Side issue. Where does the impeachment go from here? They say the Senate cannot deal with the issue until the House (Nancy!) submits the paperwork. Which sounds reasonable. Nancy adjourned the House, won't be back until after New Year. So The great Impeachment Show (GIS) goes on, and gets yet more TV coverage. Could this be Nancy's plan, drag things out as long as possible? Certainly the Senate would try to finish the impeachment off as quickly as possible. Then it's gone and we could move on to real public business.
Side issue. Where does the impeachment go from here? They say the Senate cannot deal with the issue until the House (Nancy!) submits the paperwork. Which sounds reasonable. Nancy adjourned the House, won't be back until after New Year. So The great Impeachment Show (GIS) goes on, and gets yet more TV coverage. Could this be Nancy's plan, drag things out as long as possible? Certainly the Senate would try to finish the impeachment off as quickly as possible. Then it's gone and we could move on to real public business.
Thursday, December 19, 2019
The gravitational constant is increasing
Gravitational Force F = G * (m1 * m2) / r squared. In plain English, gravitational force is equal to the gravitational constant times the product of the two masses involved divided by the square of the distance between the two masses.
When G increases, gravitational force increases.
Which is the only explanation I have for the increased number of thing I drop. Must be the increased gravity is sucking them right out of my hands to crash on the floor. Couldn't be that I am loosing my grip.
When G increases, gravitational force increases.
Which is the only explanation I have for the increased number of thing I drop. Must be the increased gravity is sucking them right out of my hands to crash on the floor. Couldn't be that I am loosing my grip.
Tuesday, December 17, 2019
US House changes rules of debate on every single bill
The "Rules Committee" is doing the great impeachment show on Fox today. The voice over explains the rules committee make up a new and different rule for every bill going to the floor of the House. This ain't right. Every bill ought to be treated the same, which means the same "rule" on every single House bill. No Rules Committee greasing the skids for or against a bill. Treat them all the same, that's fair. This special-rule-for-every-bill scheme is clearly unfair.
Representatives are supposed to vote their district
Discussion on Fox TV of all places about some 17 odd democratic reps elected from districts that Trump carried in 2016. The tone of the anchor person implied that any true blue democrat ought to vote with the party, to impeach Trump. Heaven forbid that they ignore the Congressional party and vote for what their district wants. This from a Fox anchor person. In case you are not following the great impeachment show closely, 17 House votes is probably enough to defeat impeachment in the House.
Speaking as an elected NH senator, I under stand my job to be voting for what my constituents want. And if I don't vote my district, I expect my voters will vote me out of office, with the election just a year away. Fortunately, in most cases, my own views match the views of my constituents. That must have something to do with my getting elected in the first place.
Anyhow, the great impeachment show will probably run thru Christmas and into next year.
Speaking as an elected NH senator, I under stand my job to be voting for what my constituents want. And if I don't vote my district, I expect my voters will vote me out of office, with the election just a year away. Fortunately, in most cases, my own views match the views of my constituents. That must have something to do with my getting elected in the first place.
Anyhow, the great impeachment show will probably run thru Christmas and into next year.
Subscribe to:
Posts (Atom)