USA Retail Series - 

Most people know that, for years, I have had serious doubt about the integrity of the USA economy.  One aspect of my concern deals with America's focus on consumption - which for most of the last 16 years was 32% of the US economy.   My concern is that, while selling goods that are consumed my make you wealthy, "consumption" in and of itself is not "wealth creating";  it is "wealth destroying".    Most goods that are retailed are "non durable", quickly begins to  "non durableizes itself", and thus over time and one is left with nothing - which is why the word "consume" is the base for the word "consumer". 

That said, "retailing" is extremely important because

1. "the stuff" need to be distributed somehow
2. for the most part the things that people need the things they buy and consume,
3. retail markets of the magnitude seen in America are perhaps the most competitive in the world.  So, while a portion of the "the stuff" people buy is not necessariliy be needed, at least it is being distributed to them in a very efficient manner (or so my thinking goes!)

Anyway, I have discovered an interesting way to look at retailing data which, does not alleviate my concerns, but at last I am no concerned the level of consuming has not increased last 20 years.

Data & Conclusion -

• Monthly data from the US Federal Reserve Bank plotted above right.
• 1992  US Retail and Food Service as a percentage of the US economy (GDP) is 31.5%.
• 2006  US Retail and Food Service as a percentage of the US economy (GDP) is 31.6%.
• The relative level of consuption actually very stable. (since conception)
• Disproportionately effected by the current US recession. 

Discussion

MORE LATER.