The Neverending Story

American consumers are facing continuing high debt and barely improving unemployment. Will they be able to support the burgeoning economic recovery?  Consumer debt has fallen in the last 2.5 years but it has primarily been due to defaults.  In this recovery, it is reasonable to expect consumers to be more wary about accruing debt.  It is unlikely that consumers will provide enough demand to stimulate a recovery in and of themselves.  The consumer debt situation seems unlikely to improve for the time being.

An answer would seem to lie in individuals finding their own solutions to unemployment.  There continues to be a need for innovative services an products. Exploring entrepreneurial opportunities is a way of supporting growth in the long-term rather than the short-term effects of consumerism.  Over time entrepreneurs provide job growth and demand for services and products.  The added benefit of empowered and engaged individuals is transformative.


Number of the Week: Household Debt May Be Accelerating Again - http://pulsene.ws/15BVk

Related articles

• U.S. Consumers Cut Credit Debt for Seventh Straight Month (dailyfinance.com)
• Household Debt Falls for 9th Quarter (economix.blogs.nytimes.com)
• Consumer Debt Rises, but Credit-Card Use Falls (blogs.wsj.com)

China From the Bottom Up

Image by Getty Images via @daylifeOften in discussions of China’s economic progress the role of the private sector is forgotten. The economist article below quotes an official saying that more than 90% of businesses operating in China are private. Development of the entrepreneurial sector has never been more important than it is today. Innovation, creativity, and nimbleness are the strengths of small and emerging businesses. In a rapidly changing environment where the playing field and rules keep shifting, the ability to turn on a dime will be critical to survival and success.