U.S. Consumer Spending Advances 0.4% as Incomes Grow

The video discusses the relationship between inflation, GDP growth, and consumer income. It highlights that while GDP growth is strong, inflation remains low, which is beneficial for consumers. The video also examines revisions in after-tax income and savings rates, showing a positive trend. However, it raises concerns about stagnant wage growth despite increased profits, partly due to companies' efforts to cut costs amid tariff concerns.

What was one of the reasons for increased consumer spending according to the GDP numbers?

• Tax cuts

• Increased exports

• Government subsidies

• Higher interest rates

How did the savings rate change according to the revised GDP report?

• It decreased to 2%

• It increased to 10%

• It fell to 1%

• It remained steady around 6%

What is a potential benefit of GDP growth without inflation for consumers?

• Stable prices

• Rising unemployment

• Higher interest rates

• Increased taxes

What is a challenge businesses face in maintaining their bottom line?

• Increasing employee wages

• Rising tariffs

• Higher interest rates

• Decreasing consumer demand

Why might companies be motivated to keep costs lower?

• To increase employee benefits

• To invest in new technologies

• To counteract potential tariff impacts

• To expand their workforce