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The problem being pointed out is that fewer people aren't coming in to buy burgers yet, but because the store managers heard rumors of a recession, they preempt
by diminoten 8y ago
The problem being pointed out is that fewer people aren't coming in to buy burgers yet, but because the store managers heard rumors of a recession, they preemptively fire employees and order less meat, which puts fewer dollars in their employees pockets, which means less spending power per person on average which means people actually do spend less, even though there wasn't actually anything wrong in the first place.
- coralreef 8y agoBased on what I know about American consumer spending habits, people basically spend whenever they can (which is why consumer debt is so high). It's when they "physically" can't spend that it starts to slow down (slowing income, access to credit).