A new paper form the SF Fed is getting some attention today, as it looks at the impact of the recession on consumer spending, ultimately coming to the conclusion that since the Great Recession the average consumer has consumed $7356 less than they would have sans-recession.
This chart extrapolating pre-recession spending levels basically explains it all:
There’s always something a little bothersome about these types of charts, which start from the presumption that pre-recession spending was at all sustainable. And given how big of a housing bubble we seem to have had, that’s a dicey proposition.
Still, an interesting read nonetheless.