Frugal Fatigue and Yuan Updates
Re a March 21 post about frugal fatigue…
For a fifth straight month, consumer spending is up, meaning perhaps that we are headed for a “V” recovery?
Data from the most recent Bureau of Labor Statistics (BLS) report indicates that internet spending on computer information services is soaring while purchases of newspapers and magazines are plummeting. Predictably, between 1999 and 2008, with the largest decline, the “under-25 population” spent 58% less on newspapers and magazines; those 65 and over spent the most on real print media but still decreased their spending by 22%. The report includes a great graph.
Re a March 27 post about the yuan…
Economist Don Boudreaux responds to Planet Money’s description of Chinese currency manipulation saying instead that their policy can also have a positive impact on trade by making the value of the yuan more predictable.
Hoping to settle differences during the next G-20 meeting, Treasury Secretary Geithner will postpone his report to the Congress on Chinese currency policies.
The Economic Lesson
Characterized as structural change, diminished demand for magazines and newspapers is an example of an industry contracting as demand shifts to new technology.