The Obama administration needs to concentrate on ginning up more consumer spending to create hope on Main Street for the U.S. economy.
Consumer spending unexpectedly fell in July for the first time in six months. But confidence among households was up in August, Reuters reports.
Spending reductions ahead of children going back to school is not a good sign for the economy. It could mean trouble as the country inches toward the end of the year holiday buying season.
Workers going into the long Labor Day weekend need to get the sense that their jobs are more secure and that their personal finances have recovered from the Great Recession. However, that’s not the reality.
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A majority of adults polled by the John H. Heldrich Center for Workforce Development at Rutgers University, said they thought college would continue to be unaffordable, people won’t be able to retire as expected and jobs will remain insecure, The Kansas City Star reports.
Only 16 percent of the people surveyed thought jobs and opportunities would be better for the next generation compared with 56 percent who thought that in a July 1999 survey. A third of those surveyed thought their living standard was unchanged, while another third said they had been set back by the Great Recession and the rest said their situation was permanently “devastated” or “downsized.”
It is imperative that President Barack Obama and Congress work together to boost the minimum wage from $7.25 an hour to at least $10.10 an hour and then create job opportunities especially for generation x and generation y. They are the ones who will lift Main Street to higher economic ground.