What A Joke

The annual hyping of post-Thanksgiving consumer spending and its supposed effects on the economy is upon us. As David Rosenberg says, “What A Joke;”

The Saturday Globe and Mail ran with this special feature:

Ready to Spend: An American Comeback Story

Once again, I have to stress that the true measure of a country’s standard of living is national income, not narcissistic spending. And the critical driver of income, beyond working-age population growth, is productivity. Not just labour, but multi-factor productivity. All the talk is about the revival of the consumer, but as we see in this post-Thanksgiving period, retailers are stepping over themselves to lure in shoppers by opening earlier than ever and discounting like they never have before. Call it deflationary growth. But what the article fails to notice is the downtrend in business capital spending. The article doesn’t mention that there has been no capital deepening in the USA. in well over a decade.

Figure it out. You can do it yourself so long as you are not a paid propagandist (financial journalist) or an economist.

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