flatpack-
Nonsense. GDP has shrunk by about 2.5% since 2007. It will shrink a bit more, but that's only because excessive government expenditure has inflated the appearance of GDP. Plenty of shops are still posting profits, plenty of people are still shopping.
You do know what a recession is, right? The fact that some corporations are raking in record profits, doesn't mean that consumers have spending power. Some companies are on the govt. largess. Others are using slave labour in the form of 'Workfare', where benefit claimants are forced to work for free, thereby reducing the number of jobs in the economy and further suppressing wages.
US consumer confidence falls to eight-month low
US consumer confidence has fallen to an eight-month low in May as fears about the global economy and a falling domestic stock market hit sentiment.
The Consumer Confidence Index, published by the Conference Board, fell to 64.9, down from 68.7 in April.
That was the index's biggest fall since October 2011, but above the all-time low of 25.3 reached in February 2009.
www.bbc.co.uk/news/business-18255363
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Queen's Jubilee fails to lift UK consumer mood: GFK
GfK NOP's headline consumer confidence index held steady at -29 in June, in line with forecasts in a Reuters economist poll.
"Any suggestions that consumer confidence would receive a 'Royal bounce' from the Jubilee, as it did from William and Kate's wedding last year, have been proven wrong," said Nick Moon, managing director of GfK NOP Social Research.
"The stagnant level of consumer confidence suggests that the public is stuck in a period of constant depression," he said.
Moon added that the index has not been above the -29 mark since June last year, the worst run in the survey's 40-year history.
The GfK survey lends further support to Bank of England governor Mervyn King's dire warning that Britain faced the danger of a downward spiral as companies and consumers held back spending because of fear over the economic outlook.
While the GfK survey showed that consumers were less reluctant to buy bigger items such as furniture or electrical goods, their assessment of the economic outlook worsened.
Britons have been cutting back consumer spending in the wake of the 2008/2009 slump because unemployment rose and high inflation ate away meagre wage increases.
uk.reuters.com/article/2012/06/28/uk-britain-consumer-gfk-idUKBRE85R1SC20120628
There are two ways of fixing the demand problem:
a) Pay people decent wages - this isn't going to happen without a fight.
b) Offer free and easy credit again and create another credit bubble, precipitation another crisis down the line - this is probably what's going to happen.