Which detail best supports the inference that Americans are remaining steadfast in their pursuit of consumerism? adapted from Prerecession Trends
Bureau of Labor Statistics
Leading up to the 2007-2009 recession, consumer spending as a percentage of Gross Domestic Product had risen for 40 years. Personal
consumption expenditures (PCE) growth also outpaced general economic expansion. Consumers bought increasingly more services, and the
composition of PCE shifted over time with rising in-kind social benefits and third-party contributions towards health insurance and workers'
compensation. As a result, the percentage of PCE stemming from direct household expenditures declined from 84.5 percent in 1960 to 67.6
percent in 2006.
The late 1990s saw a surge in spending as Americans bought new technology and globalization ushered in less expensive imports. Economic
growth, rising home values and equity, easy credit and declining personal savings rates also prompted higher consumer spending. In addition,
baby boomers reached their highest earning years. The 2001 recession briefly tempered consumer spending, but growth rates rose again as
Americans spent more on durable household items, new technology, and vehicles as the housing bubble peaked in 2005.
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