Does A Rise In Consumer Spending Indicate Economic Growth?

Most Americans have an opinion about the presidential debate

, the latest Youtube beat down, or Apple's new Iphone. However, not too many talk about the ridiculous financial advice coming from huge news sources considered reliable.

After tasting a small portion of the mortgage process, my appetite was whet for more information about credit, money, and buying a house. Unfortunately, mainstream economists and accountants weren't much help. I found numerous articles advising Americans to go out and spend money in order to improve the economy which left me asking, "On what planet does spending money you don't have create financial growth?"

As a result, I was hungry for more information and decided to head over to the Federal Reserve website in hopes of finding good advice for consumers looking to improve their financial situation.

The Consumer Information page mainly featured advice about managing debt (ahem) excuse me, I mean credit. As expected, our government officials, economists, and advisers are more interested in encouraging us to seek credit rather than offering sound financial advice. Sure, there were articles about banking and saving. However, the consumer information page was heavily geared towards improving credit scores in order to borrow more money.

Now, I realize I'm no financial genius but adding and subtracting can't be as difficult as their making it seem. How is it the best financial advisers in America haven't been able to figure out the debt crisis in four years? There's simply no reason in our financial policies. So as far as I'm concerned, anyone's advice is just as valuable.

Consumer Spending is on the Rise

I hate to say it but, as a U.S. citizen I feel like we're being led to the slaughter house. Statistics don't lie. Unfortunately, I can't say the same about our advisers who parade consumer spending as a sign of economic recovery. The US Census Bureau's advanced estimates predict a 1.1% increase in September retail trade sales. Sadly, this is being touted as good news which is simply ridiculous.

US Household Net-worth on the Decline

US households are suffering and that doesn't make me feel good as a fellow American. According to the Federal Reserve, "Household debt rose at an annual rate of 1.25 percent in the second quarter, the largest increase since the first quarter of 2008." If this wasn't heart-wrenching enough the news just keeps getting worse. Household net worth decreased by about $300 billion compared to the end of the first quarter.

I don't know how long we can continue to prop up a broken system which is why I am eager to get out of debt and find unconventional ways to earn money. It looks like the next bubble to burst is student loan debt and God only knows what that will bring. Until then, I plan on sharing everything I learn about stretching a dollar, earning extra money, and paying down debt.

by: Jackque

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