AS THE AMERICAN CONSUMER TIRES, CAN SHOPPERS IN EUROPE AND ASIA TAKE UP THE BURDEN?
Capitalism is all about getting and spending. In America, where household debts amount to about 115% of disposable income, capitalism is often about spending rather more than you are getting. In recent months, however, American consumers have appeared uncharacteristically hesitant. Their spending fell by 0.7% in June and their confidence ebbed last month, according to the University of Michigans latest survey. But as Americans acquire new inhibitions about spending, the French are shedding some of theirs. Frances performance was not matched by Germany and other members of the euro area, however. The long-awaited European recovery may have peaked before anyone really noticed it had arrived. Japans recovery, of course, has been much more noteworthy. But it too may have peaked. Again, Japans consumers may be partly to blame. The Japanese authorities have great difficulty stripping out the effect of deflation on their measures of output. However unreliable, the numbers cannot obscure the m
