Consumer Spending Is Up, But Still $1 Trillion Below Normal

Consumer spending increased in June, but it’s still about $1 trillion below where it ought to be:

Even though national income increased thanks to stimulus checks and expanded unemployment benefits, people still aren’t willing to spend like they used to. Instead they’re saving more than normal, and who can blame them? If they had more confidence in both the federal response to COVID-19 and Republican willingness to continue benefits to the unemployed, spending might be closer to normal. But they don’t, so it’s not.

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