The sharp decline in the saving rate over the last 15 years was not some mysterious change in consumer attitudes, it was a predictable response to the temporary wealth generated by the stock and housing bubble. Consumption is strongly influenced by wealth, as people will spend based on stock and housing wealth. The decision of millions of people to spend more money in the last 15 years was a totally rational response to the large capital gains they had on their stock or houses.
If someone gains $200,000 in equity in their home, there is no reason that they should not take a portion of this money to pay for a vacation, a new car, or some other discretionary expenditure. The issue going forward is not consumer attitudes, the issue is simply that people have lost around $6 trillion in housing wealth due to the collapse of the housing bubble and a comparable amount due to the stock market plunge.
A second Trump administration will cement a right-wing majority on the Supreme Court for a generation, and put our collective future in the hands of someone who will be virtually unchecked by our institutions. The country has shifted rightward, and the reverberations will ensue for potentially the next few decades. In this climate, a robust independent media ecosystem will be more important than ever. We're committed to bringing you the latest news on how Trump's agenda will actually affect the American people, shining a light on the stories corporate media overlooks and keeping the public informed about how power really works in this country.
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