A Rise in Spending Could Mean a Decrease Next Year's Spending

In August there was a 1.3 percent raise in the consumer rate. That means that even though our economy has taken a serious hit, people are still spending money on non-essential items. Even though this year people feel as though they can spend money, next year might be a little tougher. So while I am buying my Starbucks now, tomorrow I could be struggling to buy a pair of necessary underwear.

Martin Crutsinger says

"However, they are worried that growth could slip to a much more sluggish pace next year as the impact of government stimulus programs lessens and households continue to be battered by rising unemployment and a variety of other problems.The big jump in spending and much weaker gain in incomes translated into a big drop in the savings rate. "