One has to ask the Question on the necessity of further Stimulus. Here is some data for study on the issue. The Reader should remember that this is the peak Summer season where the greatest activity can be expected. It remains clear that We have no gang-busting spurt of activity to get Us back to normal employment. There might be an increase in Manufacturing activity for the Christmas Season in the Fall, though the Christmas Gifts mainly come from Overseas today. Secret of evaluating Fed data: When the Fed states that Retail Sales increases are modest, this means they are hopefully keeping up with the rate of Inflation. Deflation for Monetarists means that they are not getting their 1.4% Inflation, and has relatively nothing to do with Prices.
One can study this information and get an expanded view of the problem. The element I would point to within this article would be the absence of any indication that Business is trying to break out of its current trend. Core capital equipment shipments are tied to capital replacement levels, though economists would claim this is a good thing. It is not where there are a record number of Employed in this country; remember to include that Labor who are not counted simply because they have been out of a Job too long. Cliff Waldman probably has the best attitude to the data, seeing the hollowness behind the fancy dressing of the numbers.
It would seem obvious that there is need for further Stimulus. The trouble here is that Business will try to block any Stimulus which does not advantage themselves, claiming that more Stimulus costs too much with the rising federal debt; unless of course that it gives them greater Profits. I would attest that Business has gotten more than enough Stimulus, even greatly more that any need they expressed–check their record Profits under lower Production data. The Consumers, on the other hand, need a vast Shot in the Arm; not so much a heavy financial contribution, as they need more Jobs. I go back to my Plan to reduce Property and Sales Tax assessments, and connect it with a Minimum Wage increase plus a resurrection of the CCC. We need to send our Young out into the Wilderness to Clean, cut Firebreaks, and plant Trees; and pay them a slightly better Minimum Wage. The total Package will reduce Household expenses both with reduced taxation, and much lower Food and Entertainment Costs. Now here is what I would call real Stimulus. lgl