[lbo-talk] Mike Whitney, The Road to Recession

Doug Henwood dhenwood at panix.com
Wed May 19 12:39:44 PDT 2010


On May 19, 2010, at 3:24 PM, Chuck Grimes wrote:


> This answers my question from the other day, how does a consumer
> economy recover with no consumer? Credit.

Not exactly true. Even with an unemployment rate of 10%, 90% of the labor force is employed, and that 90% - especially its richer half - has gone from pinching pennies to spending more. And it's coming out of current income, and maybe savings, but not credit. So far.

Doug



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