Actually, household income is falling for the third year in a row. We're now down to 1996 levels which has resounding effects for the economy. We know how this affects normal and inferior goods, but what does that mean for you and me? Depending on what's made domestically that could mean more or less demand for goods made at U.S. factories, which in turn affects income (again) . So, depending on the good (shirts, cars, food, etc..) this could be either a slippery slope or small a rough patch.
I want to dry your attention to a graphic on the side of this article because there are many interesting things to note. We'll talk about this in class, but isn't it interesting that even though income has fallen the amount of TVs per household has increased. Is TV an inferior good?
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