Hey look, Americans started spending again in January. Kind of. According to the BEA’s latest release, consumer spending ticked up .6% in January, following months of declines. Good news? Maybe, kind of. Much of the gain may have been boosted by increased pay for military employees (government) as well as other kinds of transfer payments. In other words, not much doing private-sector wise.
Meanwhile, the savings rate hit a whopping 5%, which is a level not seen in more than a decade. If you believe the media and most politicians, this is just bad news. Savings=bad. Paradox of thrift and all that jazz. But considering the big debt pile, this is really the only way. The more we learn that there’s more to life than spending, the better.
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