By: Brendan K.
Pull out your wallets and take out some cash because 2016 is going to be the year of spending. This year Economists are predicting the average rate of spending to increase 3.1%. Finally after a a few years of lower gas prices we are seeing the effects.
In 2014 we saw a decrease in gas prices, increasing peoples disposable incomes. Why are we just seeing the effects now? Well many people were using this increase in disposable income to pay off debts or add to their savings. Now that we are rounding the second year of these low gas prices people are starting to spend more. In the last 10 years we saw a 2.7% increase in consumer spending.
Why is consumer spending so good? Well if you ever taken a Microeconomics class you would know that it puts more money into circulation which allows businesses to grow and economies to thrive. This also presents the government and marketing analysts with more information on consumer spending habits.
I plan on going into marketing and this will be a great help when I get into the field and am able to follow accurate consumer purchasing trends. And now that consumers are seeing lower gas prices as more than just a short run situation the consumers will continue to spend and can greatly help the American economy. Hopefully gas prices stay the same and don't start to increase again like a few years ago.
Article and Picture source:
Halzack, Sarah. "Retail Industry Projects Solid — but Not Stellar — Year Ahead." Washington Post. The Washington Post, 10 Feb. 2016. Web. 14 Feb. 2016.
Good post. We realized that the price of everything is rising, but we do not really focus on gas. Hope the price of the gas will keep low rather than rise up. For one thing about the article, the example is not enough. Just add more data and it will be more convinceable.
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