That scion of the business press, the Wall Street Journal, in their story entitled, “Consumer Spending Grates,” acknowledges the economic dynamic I have been describing for months and months on the blog. Here I am referring to the “game of chicken” that has dogged the U.S. economy for the last year since the economy began stabilizing in the summer of 2009. Here’s what the Journal has to say:
“From third-quarter earnings released so far this month, it’s clear that corporate America is still concerned about skittish customers. Businesses continue to employ discounts and other incentives to get customers in the door, and hopefully clutching a shopping bag or two on the way out. Yet those incentives can be costly, and companies remain reluctant to spend money on inventory expansion or hiring.”
Just remember that you heard about this dynamic many moons ago here on your humble author’s blog.
Jason
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