Consumers often see themselves as victims of economic forces. But they have more power than individuals realize. First, 69% of GDP is consumer spending. Without individuals living their lives — and paying their bills — there wouldn't be much of any economic growth to discuss.
Furthermore, consumers at odds with years of inflation higher than they have come to expect are pushing for cheaper alternatives, returning to a pre-pandemic sensibility and effectively pulling the reins in on corporations who have to keep them happy.
"While inflation is down, prices are still high, and I think consumers have gotten to the point where they're just not accepting it," Tom Barkin, president of the Federal Reserve Bank of Richmond, said last week at a conference of business economists, according to the Associated Press. "And that's what you want: The solution to high prices is high prices."
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