In an encouraging sign for our economy, consumer debt increased last month for the first time in a year. Household demand may be on the rise. Wa-hey!
I love how taking on more debt is taken as a positive when the cause of the
I wonder -- is it not possible to consume without taking on more debt? Can't we cash our paycheck, salt away some of it, and then pay for our purchases with savings instead of financing it? Apparently, we can't. Even with a supposed marked increase in our national savings rate we are still increasing our personal debt load.
On Monday, SMUD raised electricity rates 5.5%, part of an overall 13% rate increase shed-joooled over 18 months. I wonder -- is paying for electricity part of consumer spending? Does spending on utilities count in all these statistics, or only the buying of torchiere lamps, bath towels, wristwatches and Tupperware? I'm going to assume that it isn't. Thus, the five additional monthly dollars each SMUD ratepayer now has to fork over for power can't be used to grow our economy, to buy shower curtains, scotch guard, nail polish remover or chrome tire stem caps.
Of course, if you decided to salt away 40% of your paycheck for future needs, you could be tried for high crimes and treason -- you'd become an economic terrorist. As 72% of our economy is tied to how much you spend and how indebted you stay, saving your money is like planting a roadside IED on our road to recovery.
You insurgent, you!
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