I keep reading pieces by economists and journalists in the know about the impact of the current recession (it hits home in THIS home since we are now part of those numbers). While you can make numbers tell any story you wish, nothing written yet has told the REAL problem with the current crop of layoffs/firings/RIFfing.
The WHO part of it.
It's more white collar than blue collar this go-round and that is impacting the very segment of the consumer market that usually drives the economy. The rich will stay rich (when you've got millions, losses of a few thousands don't have the same impact). But families losing that $75,000-$100,000 income (paid for folks in IT, tech, telecom and related industries) aren't spending on anything - pending passage of the fog that has engulfed their future.
I know; we're in that boat and it ain't moving anywhere. So small things one usually takes for granted (flowers for Valentine's Day, jewelry, dinners this weekend; vacations; home improvements; you name it) aren't going to be purchased anytime soon. Forget cars, let's discuss small items that runs those small businesses. Women will not get their hair or nails done so often; dry cleaning will be left for another day; doughnuts will go uneaten.
People will think twice about adding to credit card debt.
I asked this last week in the Dallas Morning News' Community Opinions section and I ask it again: how will tax cuts help, or how can consumer spending be activitated, if you don't have a job?
Numbers cannot tell THAT story, or provide that answer.