Thread: US Economy Sliding Fast - Unsold Goods Pile Up

Steep Slide in Economy as Unsold Goods Pile Up



Justin Lane/European Pressphoto Agency

Businesses are struggling as consumer spending falls at the sharpest rate since the mid-1970s.

By LOUIS UCHITELLE
Published: January 30, 2009

The economy shrank at an accelerating pace late last year, the government reported on Friday, adding to the urgency of a stimulus package capable of bringing the country back from a recession that appears to be deepening.

The actual decline in the gross domestic product — at a 3.8 percent annual rate — fell short of the 5 to 6 percent that most economists had expected for the fourth quarter. But that was because consumption collapsed so quickly that goods piled up in inventory, unsold but counted as part of the nation’s output.

“The drop in spending was so fast, so rapid, that production could not be cut fast enough,â€

Not surprised at all. Hiring illegal aliens will no longer be advantages for employers if people don't buy their products.

I buy most of our clothes at thrift stores at a fraction of their original cost and the manufacturer earns nothing on the sale. Same with books, and other items we need.

The less Americans make, the less taxes we pay. The majority of illegal aliens get paid under the table, pay no taxes and send quite a bit of money out of the country. I'm no economist, but I see the huge problem with this picture.