Understanding Economic Equilibrium Quotes

“Consumers were wary of taking on debt after working it down during the recession and increased their spending only about as much as their incomes increased. This lack of a spending burst at the end of the recession earned the recovery its characterization, and criticism, as a “slow” recovery.”
― Thomas J. Cunningham, Understanding Economic Equilibrium: Making Your Way Through an Interdependent World

“During a recession consumption gets postponed or delayed because of concerns about personal income, and when the recession is over and people are confident again about their future employment and income, they make up for lost consuming.”
― Thomas J. Cunningham, Understanding Economic Equilibrium: Making Your Way Through an Interdependent World

“In a functional sense, we work to be able to consume, and in the relatively advanced, wealthy economy we enjoy, it is reasonable to expect a higher share of output to be devoted to our own wants and needs over physical capital and infrastructure. The state of the labor market plays a crucial role in determining spending behavior. When people consume, they make their decisions based on their expectations for future income: confident, spend away; not so confident, cut back. A tight labor market breeds confidence. If you’re in a job you might not have for long, or might not want for long, and you look around to find plentiful opportunities, you’re more likely to spend and possibly take on debt. One of the more interesting aspects of the recovery from the Great Recession of 2008 and 2009 was our caution.”
― Thomas J. Cunningham, Understanding Economic Equilibrium: Making Your Way Through an Interdependent World