Consumer confidence in the United States is practically on life support these days -- and we most certainly cannot fault consumers for that.
After more than two years of federal "stimulus" that was unsuccessful in holding down unemployment, President Barack Obama's new recipe for reining in joblessness is -- more stimulus!
And he wants to raise taxes, too, while giving only lip service to needed reductions in annual federal deficits and our $14.6 trillion national debt.
None of those failed prescriptions for our economy gives the average American consumer any reason for confidence that things are going to turn around soon.
In fact, recent reports show that consumer confidence has now fallen to its lowest level in almost two and a half years. The Conference Board's Consumer Confidence Index dropped in August to 44.5. For perspective, a reading higher than 90 is considered good -- so we're currently at less than half that level.
Those aren't just interesting numbers. They indicate a serious likelihood that our economy is not going to improve in the near future. That's because when consumers lack confidence in the economy, they pull back on spending. And since consumer spending accounts for roughly two-thirds of the United States' economic activity, lack of spending is a major drag on any prospects for real recovery.
The American people clearly are not excited about the president's plans to "fix" our economy. Only about one-fourth of those surveyed in a recent Gallup poll approved of the president's handling of the economy. So they obviously don't want more of the same.
It is long past time to end the talk of higher taxes and more deficit spending -- and the threat those policies pose to our already fragile economy.