In reference to the New York Times Posting dated September 27, 2013 on the increased level of consumer expenditure of the US people during the July-September quarter, it is important to undertake a critical analysis of the reason behind this trend. Several factors explain the consumer behavior in any economy and it is important to consider them to ascertain if they can also contribute to economic development. In respect of this article, it is important to realize that the wages and salaries had ben significantly altered upwards. Income is a function of expenditure and this means that many households are currently able to afford several items. However, this is only economical if the price levels remain relatively stable and since this is the case in US, it true to claim improved consumer welfare.
Employment level is an overall contributor to the income size of the population and according to the article, decreased rate of layoff in the corporate society in US significantly boosted the consumer confidence hence promoting the observed increased in spending. The economic principles on which this article is based stand out to be practical especially when it considers government move to pay its workers higher salaries. Increased government expenditure boosts the overall economic growth through multiplier effect and this constitutes increased spending by the citizens. Such a debate is important in any economy as it provides an avenue of forecasting the overall socio-economic and political feature of the society. Critical thought over the article exposes some fault lines especially due to some other economic analysts who claim that the stated factors are not the only players in the increased spending.
This means that the article is intensively scrutinized and the ideas presented here are relatively well-founded and reliable to warrant better understanding of the US economic trend and the collateral effects on other parts of the world.
Works cited
The New York Times. Consumer Spending Rose Slightly in August: September 27, 2013.Associate Press
Retrieved on 29th September 2013 from http://www.nytimes.com/2013/09/28/business/economy/consumer-spending-rose-slightly-in-august.html?ref=economy&_r=0
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