With rising debt, interest rates, and cost of living how can consumer spending continue?
January 16th, 2012 | 
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Question by advait0: With rising debt, interest rates, and cost of living how can consumer spending continue?
I still see people out at the malls, spending and buying though perhaps I do not see people walking with as many bags as they do. Also it seems people working in retail stores have told me sales are slightly down.
How can people just keep spending, and spending? I suppose some people can still afford things like plasma televisions, designer handbags, clothing, and finer things. Though how do people just keep spending? And I see more malls going up all the time.
Has the collapse of the housing market not put an dent in consumer spending at all? Where are people in the upper middle class and middle class getting this money to spend?
Best answer:
Answer by Mr. Jessup
We are poised at the fore edge of a serious economic downturn which will change all this. But of course, as experts will tell us, many people have no retirement plan and no personal savings. They spend their paycheck on toys and worry not about tomorrow. Lenders have been willing to put people in a car or house which it takes too much of their income to pay for, and this has created an appearance of wealth and plenty. This too has been changing recently and conditions will become worse for the people spending all their meager income on the trappings of the good life without a sufficient economic foundation.
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