The Rabid Capitalist

Professor Glenn A. Okun

The Wall Street Journal today identified the consumer financial stress I described two weeks ago (see https://therabidcapitalist.com/2023/09/12/consumer-wellness-check-the-big-point/ ).

High interest rates and high prices are reducing affordability. It is observable in both home and auto purchases.

The consumers’ contribution to GDP (typically 70%) cannot be ignored. Housing and auto inflation are somewhat sticky. The consumers’ costs are locked in contractually in the form of leases and mortgages. We should expect these sources of inflation to remain elevated.

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