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Living Paycheck to Paycheck

Published 08/14/08 Alexia Cameron - Print Article
E-mail - editor@economyincisis.org

While economists hoped that the second half of the year would fare better than the first, a myriad of economic gaffes are preventing any such economic surge. Although the waning economy has led many consumers to increase their shopping at wholesale clubs and discount outlets, even these superstores are experiencing less than desirable results.

While Wal-Mart reported a 17 percent increase in quarterly profit on Thursday, it is clear the rise is only temporary as stimulus checks continue to dry up, further signifying Americans are living paycheck to paycheck.

After adding $100 billion to this year's federal budget deficit, the stimulus checks have proven to be nothing more than an insult to American's intelligence by offering a false sense of an economic upswing. As the stimulus checks come to an end, Americans are left with increased falling home values and an even tighter credit market.

“We’re not creating jobs in the private sector. You’ve got the credit situation getting tighter, along with stock prices coming down and home values falling. That’s a cocktail that’s going to leave a vicious hangover,” Michael T. Darda, chief economist at the trading and research firm MKM Partners, said.

Source nytimes:

Wal-Mart Stores, the world’s largest retailer, reported a 17 percent rise in quarterly profit on Thursday as shoppers headed to its stores for low prices on food, health care products and electronics. The retailer also raised its full-year earnings outlook.

Source nytimes:

“I had been hoping that the second half of the year would be better than the first half,” Michael T. Darda, chief economist at the trading and research firm MKM Partners, said. “But we’re not creating jobs in the private sector. You’ve got the credit situation getting tighter, along with stock prices coming down and home values falling. That’s a cocktail that’s going to leave a vicious hangover.”

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