Looking Up - Working Hard at It

The U.S. economy is on the verge of getting stuck in a rut.

Looking Up – Working Hard at It

J.Walker SmithYankelovich MONITOR®

The U.S. economy is on the verge of getting stuck in a rut. It's a knotty problem that goes something like this. The drop in consumer spending sparked by plunging asset values (housing and stocks) and exacerbated by tightening credit worsens unemployment as companies reduce or hold fast their workforces in order to manage costs in the face of declining sales. In turn, unemployment chokes off spending even more. People who have lost their jobs can't spend as much as before. Everyone else cuts back, too, out of worry...

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