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Ake’s Take: Retail Sales Are Vibrant – Where Is The Money Going?

The federal government has pumped $850 billion of direct stimulus payments to citizens in response to the pandemic (Peter G. Peterson Foundation). In combination with the COVID health mobility restrictions, this cash infusion resulted in changes in retail spending patterns. Since the pandemic started, there has been a surge in retail goods spending as consumers had more money to spend and service spending was severely curtailed.

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Pent-Up Demand and a Roaring Twenties Redux

Euphoric State

In ’21, we see an economic recovery unlike never before. Of course, I am referring to 1921, after both WWI and the Spanish flu had ended. But the country’s mood now, as vaccines work to end this pandemic, is beginning to rise toward a euphoric state.

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