In The Globe and Mail article “U.S. Personal Income Falls, Spending Rises”, Martin Crutsinger explores the decrease in earning for Americans, but the increase in their spending. This article relates back to the idea of economic inflation. Crutsinger reveals that the lack of new jobs and the lower wages are increasing consumers’ willingness to save money. Due to inflation, Crutsinger writes that Americans are spending more money on products such as food and clothing, but less on appliances and costly products. This idea connects back to Class two’s discussion of needs versus wants. Crutsinger cites BMO senior economist Jennifer Lee that although consumers are spending more; however, “the gains are pretty mediocre” (The Globe and Mail). The article states that the main reason causing this is the increase in prices such as the prices of food and gases. Although consumers are saving more of their incomes, they are required to pay more money on necessities. Despite customers spending more money, with rises in prices, the economy in fact has not gained a significant growth.
The original article can be found on The Globe and Mail website here: