Tag Archives: consumer confidence

99ers vs 26ers

By Andrew Busch | Published: August 30, 2010

Today, the WSJ carries an editorial from Harvard economics Professor Robert Barro entitled, “The Folly of Subsidizing Unemployment.” It explores a theory I subscribe to (and have been writing about for months) that the unemployment rate is higher than it should be due to the extension of jobless benefits from 26 weeks to 99 weeks.

Barro’s argument is the same one used in the 1990s that led to welfare reform in the United States. “The loss in efficiency results partly because the program subsidizes unemployment, causing insufficient job-search, job-acceptance and levels of employment. A further inefficiency concerns the distortions from … …READ MORE

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Discovering No Spending:

By Andrew Busch | Published: October 7, 2009

In the past, consumer spending was 70% of the US economy. In the past, an increase in consumer confidence has led to an increase in consumer spending. We have seen global increases in consumer confidence including today’s UK numbers. US consumer confidence has risen from a low of 25.3 in February to 53.1 in September. However, retail sales are still lagging and are expected to be down 2.0% in September.

According to the Discover US Spending Monitor, US consumers are still worried about their personal finances and are limiting their spending plans. The survey showed 19% expect to spend more … …READ MORE

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