Consumers to cut back

NEW YORK -- From soaring gasoline prices to weaker jobs prospects, Americans are gloomier about the economy than they were just before the U.S. invasion of Iraq. They're so anxious that the fewest Americans say they are planning vacations than in the past 30 years.
And those are worrisome signs for a deteriorating economy, since eroding consumer confidence foreshadows weaker spending.

Economists closely watch sentiment readings since consumer spending accounts for more than two-thirds of the nation's economic activity. Economists closely watch sentiment readings since consumer spending accounts for more than two-thirds of the nation's economic activity.

http://www.indystar.com/apps/pbcs.dll/article?AID=/20080430/BUSINESS/804300428


Lets take a look what this really means for the America public.
When the consumer cuts back because of high gas prices and high taxes, that means that you are not spending as you did before. Those business expenses go forth no matter how much money the general public is spending at that store. This means cut backs, usually in personal. You may see some even close their doors because if the money is not coming in, these bills will not be paid.
Who is at fault? I put the blame on all. The people and the government. The banks and loan companies. Why has the Feds lower the rate to the finical intuitions for the last few years? So that you could borrow more money, at a lower rate. How many times have we seen advertisements, not with the total loan value but how much you will have to pay per month?
Have you ever heard anyone say "I can afford one more payment per month"?

I am getting estimates on a major purchase that I plan for this week. I had one sales person ask me what it would take to get my business today. Before he left he cut $600 off the estimate. He said he had crews sitting at home that could be here tomorrow morning. That tells me the real story.