As the holiday season is upon us we will be seeing both the positive and negative effects of the economy according to Jeffry Bartash’s article titled, “The holiday season will showcase the best and worst of the U.S. economy.” His article addresses how consumer spending is currently high, while business spending is not. The article states, “American households have spent a bundle this year to keep the economy plowing ahead in a record 11th year without a recession. Consumers have accounted for 80% of the economy’s growth, with government spending supplying most of the rest.” Although during this time of the year consumer spending is especially high, it is surprising at how high this percent is prior to the beginning of the season. This could be due to the wage and income growth as the article also addresses, as well as a spike in the housing market.
As stated previously, the negative effects of the economy are currently in business spending. The article addresses the gap between the consumer and business spending not changing. Bartash states, “Investment has fallen slightly through the first nine months of 2019, a far cry from the double-digit growth just a few years ago.” Given these facts, it is difficult to fathom how the economy can continue to grow at the rate it is.