I have always heard and read that when the consumer "feels" good about his financial situation they will spend and help to spur the economy.
We've been told that economic growth is sluggish. People are starting to spend but not at a great pace.
My wondering is as to why when people think they are getting a great deal their confidence about the economy does not come into play.
For instance Cash for Clunkers. Dealerships couldn't keep enough inventory to supply the demand. Then the government did the First Time Home buyers credit and the Repeat home buyers credit and I know for a fact that homes for sale were being shown and contracts were being written like mad.
Where was that lack of confidence when those great deals or opportunities were available to the public? There was no problem with financing for either those cars or the homes during those sale periods.
I am no economist and I know it is a lot more complicated than this but in layman terms it is interesting that the public will jump when they think they are getting a deal and when they don't then they sit tight and hold onto their money.
As a society are we that driven by gimmicks and deals?