The Consumer is MIA!

This morning, the latest month's Retail Sales Report came out and, after 2 months of meager but positive growth, the consumer is once again missing in action. The economists who had been surveyed before the report, had looked into their dusty crystal balls and had predicted the future to be a growth in sales of seven-tenths of one percent. In actuality, the overall sales came in with a "loss" of one-tenth of one percent. Worse than that, if you yank auto sales out of the number and their artificial boost due to the "Cash for Clunkers" program, the actual sales in all other areas were down by six-tenths of a percent; down almost as much as they were supposed to be up (Click to See Full Story: "Bleak sales are another reality check for economy"). I really think all those economists should have their crystal balls checked before they make another one of their not-even-close projections.

The ominous thing about this report is that unless the consumer enters back into the picture and starts buying things, our economy will never recover. The economy is 70 percent consumer driven. Obviously, the tax cut that Obama gave to 95 percent of Americans -- the one that gave everybody who got it about $13 a week --- isn't working. As I've said before, that silly tax cut won't even buy a daily donut and a cup of coffee; let alone, even mildly attempt to restart this economy.

We are now nearly 7 months past the enactment of the Stimulus Package and we are still getting horrible numbers. From meager tax cuts to part time infrastructure work, the "Stimulus" is just a flop!

In addition to that bad news, the foreclosure rate just keeps rising. Foreclosures were up by 7 percent in just one month from June to July. On top of that, the number of foreclosure filings, as compared to last year's July number, went up a whopping 32 percent (Click to See Full Story: "Foreclosures rise 7 percent in July from June"). Again, where's that Obama program -- his 31 percent solution -- that was supposed to help stop all these foreclosures? (Click to See My Blog Entry: "The 31 Percent Solution?")

Nothing that this Administration has done or promised to do has come true. That's why Obama and the Democrats "should not be trusted" with any more of our money for things like Health Care Reform and Cap and Trade. First things first! Get this economy rolling again!