Tuesday, February 9, 2010
The burger and beverage recession
This article is interesting because it observes the recovery of the economy from a consumer's standpoint. By identifying normals goods as indicators such as Coca-Cola, McDonald's and Coors beer, the article states that consumer confidence still has not recovered. Especially compared to foreign demand for these goods which continue to show increasing trends, spending in the United States has not matched such levels. For all three companies, losses were still experienced in the United States however fortunately for these multinational companies, international growth is making up for the losses. This article is slightly concerning because it is difficult to lift the economy out of its hole without consumer spending and the continued reluctance, especially for normal goods that have been staples of American society for decades, may show that the recovery of the economy is still unconvincing enough to persuade consumers to spend.
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This is quite an interesting article. Consumer confidence is continually low and it may be a while until we see consumers spend their dollars. However, in order for our economy to pull out of this hole we need consumers to spend and until we restore confidence we will continue to experience this slump. Even though retail sales were solid during the holiday shopping season consumers were reluctant to go back to their spendthrift ways.
ReplyDeleteI agree with both of you. Consumers will not have a greater sense of confidence in the economy, when everything is still unpredictable and other consumers are not consuming. But the government nor companies can force consumers to spend, they can only give incentives. Thus, I believe this will be the way to increase C.
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