US Consumer Spending Surges As Biden Economy Rockets Ahead

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Retail sales across the U.S. economy in October slightly beat expectations, setting an apparent all-time record for the amount of money spent by U.S. consumers in that context within a single month, before adjusting for inflation. It’s clear: there is no sign of the new economic calamity that ex-President Trump and others predicted would befall the United States if Biden took office. Instead, Biden and his Democratic allies in Congress are continuing their work to push past Republican opposition and enact substantively uplifting policies for the American people.

The total amount spent by U.S. consumers at stores and restaurants across the month of October hit $638 billion, marking a 1.7 percent increase (before inflation adjustments) from the previous month. Per Dow Jones, economists expected the month-to-month increase to be at just 1.5 percent for October. The New York Times notes that the “continued strength of consumer spending reflects the resilience of the U.S. economy after a year and a half of disruptions, and the success of the government’s economic response in insulating many families from the damage,” adding that overall, households “have trillions of dollars more in accumulated savings than before the crisis.”

There are, though, serious issues weighing on the U.S. economic environment, such as inflation. Contrary to claims from certain Republicans, this inflation can’t be neatly tied back to the Biden administration’s policies, according to an expert observer cited by the Times. As Aneta Markowska, who works as chief financial economist for the Jefferies investment bank, put it, it’s high “demand in the first place that’s causing prices to move higher.” Read more, including a recap of the continued high rate of consumer spending on goods (versus services), at this link.

Despite the generally positive developments, Trump is sticking fast to the idea that America is heading over the side of a rhetorical cliff. In a statement that he released on Thanksgiving, he said, in part: “do not worry, we will be great again—and we will all do it together” — despite the fact that, for the week ending November 20, new unemployment claims hit a one-week total of just 199,000, thereby falling below levels seen throughout the entirety of the COVID-19 outbreak. He’s not in touch with the relevant facts at hand.