Consumer Bubble (ENG101DISwk4)

Consumer Bubble
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Institution
Introduction
Leonhardt’s main points include the consumer bubble that has taken place since the recession. It also seeks to analyze the effects that the consumer bubble has caused in the business market. This includes a decline in the job market as well as the consumer purchases. Furthermore, the rate at which the consumers utilize products such as cars, stoves, and gas as well as home appliances has significantly reduced. The paper also attempts to analyze other factors such as the spending by the Federal Reserve Bank. This is in a bid to illustrate the priorities of the country amid the aftermath of the recession. In addition, debt resurfaces as the contributing factor to recession as it facilitated in the decrease of the savings of the population. Furthermore, Leonhardt attempts to give case study of the happenings of Wal-Mart. This is to shed light on the decrease of the wealth of the consumers as well as the uncertainty of the future. It is demonstrated in the purchases of smaller packages of the products.
The fizzling of the consumer bubble has led to decrease in the opportunities of employment. This has led to difficulties in payment of rents, health bills, school fees as well as lack of coverage from the insurance bodies. As such, this has contributed to financial stresses as withdrawals from savings as well as retirement funds were utilized to counteract the effects. Moreover, this has contributed to a change in the spending habits. This has seen a change of priority in the product...