Has the Consumer Lost Their Purchashing Power?

Is the power of the average consumer as strong as we thought it was in the past? Sadly it appears to really not be the case. With the economy being in the current state it is, prices tend to be rather skewed and remain that way. When a lesser demand at another time would cause the price to come down, when the consumer was not buying it, it does seem like the price is just remaining at the level. The economy seems to be in a rather prominent rut and prices of goods and services are elevated, much to the dismay of the average consumer.

In this Economy What is the Purchasing Power of the Consumer

There are two choices it seems in this economy with purchases. Either the consumer must break the bank, pay the price, and hope for the best, or they will have to do without. And those who set the prices, often have consumers right by the throat, and often times right by their wallet. People don't seem to want to vote negatively with their wallet. The price of gasoline recently continues to rise and people are not driving that much less on average.

Sure there are some people who have given it up, but we have grown too dependent on our cars, our modes of transportation and thus the purchasing power of the consumer has been diluted to a great extent. Gas prices only go down to an extent to give us a false sense of security. But that sense of security is often missed.

If enough people banded together and voted with their wallet could something be done? Perhaps, but perhaps not. Likely in this economy, the consumer is dependent on certain things and they will fold faster than the people offering the services and setting the prices. Inflation is an ugly thing and the demand is still high, as is the price. The demand might lower temporarily but it is a battle of wills that cannot be one.

The economy mostly for worse has really caused our ability to make choices with our wallet to be less. Its either pay the price or do without and tough luck if you do either. The state of the world in 2012. Consumers don't hold the key. They are at the mercy of big business.

Stock Market Report 3/7/12

In what should be no surprise to anyone who is following the economy, the stock market after dropping yesterday, has bounced right back. Jobs report, perhaps, for what that is worth, but one must wonder what percentage of the average American do Stock Market Investors equal and if there is any average Americans investing in the Stock Market.

Dow Jones: 12,839.07(+79.92)
NASDAQ: 2935.69(+29.37)
S and P 500: 1,352.66(+9.30)