If you watch much financial television you’ll see numerous debates as to exactly what is going on in the economy and exactly what could turn around the ailing economy. There are so many different ways of trying to stimulate the economy that it could make your head spin, but the truth is they all boil down to one simple thing; making the consumer want to spend their money once again.

The United States economy is extremely dependent on the consumer. In fact over 70% of the overall United States economy comes from consumer spending. That is quite a stunning number, and it is one that is very concerning at this time. Why is it so concerning? Look at consumer confidence numbers and retailers earnings reports. The Consumer Confidence Index plummeted to an unheard of level of 25 in February. Consumers outlook of the next six months dropped even more precipitously, which is certainly an ominous sign for those wanting a rebound by the end of this year. The average consumer isn’t stupid and they definitely hear the national news every night which tells just how bad things are right now.

The fact of the matter is the American economy needs the consumer to want to spend their hard earned money and get it cycling through the entire economy. The other simple fact right now though is that the average American simply can’t be doing much spending at all right now, especially discretionary spending. Americans are concerned about their jobs and the entire financial system of our country. Why exactly should Americans be spending that hard earned money? From a broad economic based thought, spending must occur to promote a rebound, but from the point of view of an average consumer, I see no reason to be spending right now. Until things get settled out and consumers have a reason to spend, expect the American economy to have serious issues finding any real footing.