Originally Posted by
wahoonc
People spend more on other things leaving less money for the car? Back in 1950 there were fewer fast food emporiums, fewer big box stores full of cheap crap, and people actually put money in their savings accounts. I wonder what the annual miles driven then was compared with today?
Aaron
It would be interesting to have a comparison, but I suspect you are right.
Another factor though is that a bigger chunk of the population is cash strapped. Particularly young people.
This
Paul Krugman article points out the problem:
You’ve probably heard lots about how workers with college degrees are faring better in this slump than those with only a high school education, which is true. But the story is far less encouraging if you focus not on middle-aged Americans with degrees but on recent graduates. Unemployment among recent graduates has soared; so has part-time work, presumably reflecting the inability of graduates to find full-time jobs. Perhaps most telling, earnings have plunged even among those graduates working full time — a sign that many have been forced to take jobs that make no use of their education.