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will rahal

There is no doubt that the consumer has a propensity to spend. The question is, with the increase in Non-Durable goods prices linked with food and energy, does the consumer has the ability to spend now?
I have posted some illustrations using the ratio of Non-Durable to Durable Goods Consumption and how it behaves into mid-recession.
The current ratio level has been associated with recessions in the past.
See "Consumption: Propensity vs Ability"

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