People Don’t Have Any Money

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Consumer spending continues to suck:

Most stores reported significant declines — with the worst coming from chains that specialize in teenage clothing and gear.

Over all, the industry posted a 2.9 percent sales decline compared with a year ago, according to Thomson Reuters, making August the 12th consecutive month of negative growth. The August decline comes on top of a 5 percent drop in July.

Despite signs that the economy is stabilizing, consumers remain reluctant to spend. That does not augur for a good holiday shopping season, a crucial time for retailers. As analysts at AT Kearney noted in a recent back-to-school report: “thrift is settling in as a habit for consumers across the board.”

Look: thrift is not “settling in as a habit.”  People are spending less because they don’t have any money.  Some are unemployed.  Some have had their hours cut.  Some are paying down credit card balances.  Some are desperately trying to make ends meet after their ARMs reset.  Some are paying off home equity loans they thought they’d be able to refinance forever.  Habit has nothing to do with it.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

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