With no consumer spending, economy keeps dragging
(NEWSER) - There are plenty of theories and explanations for the economic crisis that has afflicted the United States for years now, but they all miss the element of the continuing malaise—it's really about the bursting of the decades-long consumer spending bubble, writes David Leonhardt in the New York Times . "Discretionary service spending" (think education and entertainment) has never fallen more than 3% in a recession in decades—in this recession, it has fallen 7%. "If you’re looking for one overarching explanation for the still-terrible job market, it is this great consumer bust," says Leonhardt. More»