Consumer Confidence and the Economy

Friday, August 12, 2011

A trader reacts to the market downfall on the floor of the New York Stock Exchange at the closing bell August10, 2011. A trader reacts to the market on the floor of the Stock Exchange. (STAN HONDA/AFP/Getty)

The latest consumer confidence numbers are due out later today and — given the roller coaster week the stock market has endured, and the Congress's recent debt ceiling decision — they aren't expected to be great. In such tumultuous times, it’s difficult for anyone to maintain confidence in the economy. But confidence is just what some experts say is necessary to create jobs and keep the markets stable. So, how do we inspire it?

We're speaking with Don Peck, features editor at The Atlantic and author of the new book "Pinched: How the Great Recession Has Narrowed Our Futures and What We Can Do About It." He tells us how significant confidence is in today's economy and the impact of over-confidence during the boom time of the '90s. 


Don Peck

Produced by:

Joseph Capriglione and Jen Poyant

Comments [3]


"We are five days away from fundamentally transforming the United States of America" Obama - 2008

Truer words were never spoken as we witness "changes in society’s character"
and the withering of consumer confidence.
"Narrowing our futures" may be a suitable campaign slogan in 2012 to replace "Hope and Change" which now sounds more like a desperate prayer than a jaunty cheer.

Aug. 12 2011 08:33 AM
Peg from Southern Tier NY

Consumer confidence will return when Americans are employed at a LIVING WAGE. Americans would be happy to spend if they had the funds to do so - most of us are not just sitting on our money. The real problem is that too many Americans do not have enough to cover the basics. The minimum wage is a tax write off for employers as it forces the working poor to use government welfare programs to provide food, energy, housing and health care assistance - making everyone's taxes higher.

Lower taxes for the wealthy has not created jobs that provide a living wage. It's time to collect more revenue from those who have it.

Aug. 12 2011 07:26 AM

It feels like there is a riot of thugs wrecking havoc in our financial markets again. We need more policing.

Aug. 12 2011 06:17 AM

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