Economics Tricks

The high gas prices, the consequences of the credit crunch on the Real Estate Market, the increased cost of the Health Care and other negative events all, have been affecting the volume of the consumption of the Middle Class segment very negatively.

While the richer segments of the US population, of which financial situation is more stable and do not feel the increased costs so painful, the drop of the current domestic consumption is due to the evident fact, that the majority of the US population which lives from paycheck to paycheck is trying to save money on its daily shopping. A current survey, which some economists and financial experts executed in the Restaurant Business shows that there was an 23% drop on average in the volume of some big restaurant chain. Well, the average US consumers spend less at this time thinking twice or even three times on what products they are willing to spend their money. Those companies and entrepreneurs can remain competitive, and enjoy further increase in their sales volume who either offer unique products which cannot be substituted by others or offer their products on very competitive prices which they harmonize to the weakened purchasing power of the average consumer.

Well, one of the main objectives of the next coming US government and the President of the United States has to be to stimulate the domestic consumption and strengthen the Middle Class. There are several solutions as reduction of taxes, providing financial help for mortgage owners, providing more financial benefits for those families which raise two or more children or single mom with children etc.

One thing is sure: if the US economy wants to keep its role in the future development World Economy beside the EU, Far-East, than first the actual and serious problems of the US Economy have to be solved or at least considerably moderated.