BY TYLER DURDEN
THURSDAY, OCT 19, 2023 - 01:50 PM
Via SchiffGold.com,
Every time retail sales come in higher than expected, the mainstream media breathlessly reports this as proof that the American consumer is strong and resilient. In his podcast, Peter Schiff explained that these retail sales numbers aren’t a sign of a strong economy. They just reflect Americans paying more for less. And what’s worse, they’re burying themselves in debt to do it.
Retail sales were indeed stronger than expected in September, increasing by 0.7%. The expectation was for a 0.3% gain. Year-over-year, retail sales are up 3.8%.
The media hyped the report. CNN said it was a sign that consumers “aren’t tapping out just yet.” But Peter said the report was not actually good news.
First, it’s important to remember that retail sales data is not inflation-adjusted.
Everything costs more. Everything you buy is a lot more expensive. So, assuming that you don’t buy less, and of course, some people are buying less, but if you just buy the same stuff and everything costs a lot more, well of course, retail sales are going to go up.”
But this doesn’t indicate that the economy is thriving, and it doesn’t mean Americans are on a spending spree buying more stuff.
In many cases, they’re buying a lot less. They’re just paying more. And they’re buying fewer of the things that they want because they’re paying more to buy the things that they need.”