White House urges US consumers to spend

[Steve Gardner]

I don't like to 'borrow' from other forums, but this deserves to be shared.

First, this article appeared in a thread over at ATS.

Source: The Raw Story

The White House, buffeted by a stronger than expected drop in monthly US retail sales, urged US consumers Thursday to shop and said they should be confident in long-term US economic health.

"We do want to see the consumer spend, and that's one of the reasons for the rebate checks," spokesman Tony Fratto said, referring to a key component of a stimulus package valued at 152 billion for 2008 and 16 billion next year.

"The big message is that you can have confidence in the long-term future of our economy," Fratto told reporters amid growing fears that the world's wealthiest country may be facing a recession.

He spoke after the US Commerce Department reported that US retail sales fell an unexpected 0.6 percent in February from the prior month as consumers coped with rising oil and food prices.

Core retail sales, excluding auto sales, dipped by 0.2 percent, the Commerce Department said.

The 0.6 percent fall was far worse than analysts' consensus forecasts of a 0.2 percent decline in both indicators.

With consumer spending the main engine of the US economy, the February report showing Americans were closing their wallets heightened concerns the world's biggest economy is falling into, or already is in, recession.

The White House has refused to use what US President George W. Bush called "the 'R' word" in an interview Wednesday, and Fratto said that he expected the US economy to show signs of strength later this year.

"We are going to see the benefits of the tax relief and the economic growth package coming on line. The Federal Reserve is taking measures that would allow growth to return to the economy," he said.

"So we want to let that have the impact that we expect it will have, and if it does I think we'll see economic growth and job growth return -- and we would expect the consumer to return also," said Fratto.

The overall tone of the response was very negative and included this excellent post from Kozmo.

ATTENTION: There is an IDIOT in the White House!!!

Spend what I ask!?!? I haven't a penny left to spend on necessities, let alone the luxuries that have kept this ailing economy afloat for so long.

I have been laid off and have almost zero prospects for a position with a sustainable income. Gas prices have shot through the roof to almost $3.50 a gallon. Our grocery bill has almost doubled from just 1 year ago. My medical insurance premiums saw a 30% increase year over year. My house is worth about 15% less than the mortgage note that I hold on it. My interest rates on debt now average over 25% and are sucking a full 130% more of my income each and every month. And did I mention that I can only find jobs paying slightly above minimum wage? Service jobs with no income, no benefits and no prospect of ever supporting a family let alone getting ahead in the world.

This is it, folks. This is the end of the US lifestyle as we have known it. No economic stimulus plan, no bank bailouts and no begging and pleading from the Chief MORON in the White House are going to save us! The dollar is plummeting like a stone and we have no real jobs left in Amerika - since we've sold them all to India and China - at the alter of corporate greed.

Good, I say! Let the whole damned house of cards come tumbling down! These greedy old white bazillionaires were too short-sighted, greedy and stupid to see that they have destroyed themselves. In 1980 the top 1% of wage earners controlled less than 24% of the wealth in the country. In 2000 the top 1% controlled over 40% of the wealth! It's really pretty simple economics... 1% is NOT going to spend their wealth as effectively as the next 99%. When wealth is hoarded at the top of the food chain, that leaves less for the masses to spend. When the masses spend less then business suffers and the recession train picks of momentum. At the current rate those in the top 1% will have amassed a mountain of... worthless paper fiat currency that will no longer have value on the world market. So congrats greedy old white bastards - your greed has finally seen to it to destroy the Amerikan way of life!

And when the depression hits like an asteroid and your money no longer buys you anything - don't you dare knock on my door looking for help! I'd just as soon watch you die of starvation in the street then to feed you my most rotten table scraps!