Doom and Gloom?

Doom and Gloom? Three sorts of players will determine the near-term future of the American economy: consumers, businessmen, and politicians. Only one seems to be willing to give the economy a boost—consumers. At least, that has been the case until now as consumers flock to auto showrooms to replace aging vehicles, and re-enter the housing market, driving sales and prices up. Indeed, builders who were moaning about the lack of buyers now complain that they cannot find enough skilled construction workers. Never mind that unemployment remains high and income growth low-to-negative; consumers have been sufficiently confident—the highest level in five years—to dip into savings to gratify their current wants.