What does Nobel laureate economist Paul Krugman have to say about the recent decline in consumer spending? Let’s take a look at his perspective and prescription, from the New York Times:
The long-feared capitulation of American consumers has arrived. According to Thursday’s G.D.P. report, real consumer spending fell at an annual rate of 3.1 percent in the third quarter; real spending on durable goods (stuff like cars and TVs) fell at an annual rate of 14 percent.