In a severe, consumer-led recession like this one, the labor market is a leading (rather than lagging) indicator of economic recovery, and the consumer still drives the U.S. economy (private consumption still makes up over 70% of GDP).
Along the current regulations, very severe consumer tests have been recently introduced.
However, in recent years, China's rapid economic growth has contributed to severe consumer inflation, leading to increased government regulation.
This week's news about October retail sales (-2.8% relative to the previous month and now down in real terms for five months in a row) confirm that the U.S. has entered its most severe consumer-led recession in decades.
Taking away a jury's power to determine when a defendant's actions have been egregious--and to assess a fine intended not to compensate the plaintiff, but to punish the wrongdoer--would be a severe blow to consumers' rights, trial lawyers and consumer groups say.
Faced with a severe cut in consumer spending in its home market, the Italian telecom giant has reported a series of lackluster financial earnings.
"It's highly improbable that we'll see a severe retrenchment in consumer spending," said Paul Ballew, G.M.'s chief industry sales analyst, adding that it would take a severe recession for sales to drop as sharply as the report suggested -- to 15 million a year from the nearly 17 million projected this year.
The carmaker has also suffered a severe loss of consumer trust.
Earlier this month, the agency reaffirmed Britain's "AAA" sovereign rating, and said that this should "remain secure" even in the event of a "severe correction" to consumer spending.
Meanwhile, BNP Paribas, the French investment bank, said it was gloomy about the prospects for growth in the UK in the light of a severe squeeze on consumers.
