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Both the consumer and the corporations are hoarding. Neither are spending creating an economic cycle that has hurt job creation. In fact, this cycle is causing many large corporations to cut jobs which further erodes the consumer spending cycles.
In the USA a good tell is the automotive industry. The manufacturers produce vehicles in excess of demand and the result is recycling these vehicles as the companies can not debase their pricing structure. This is true with many products as the recycling or disposal cost adds to the price of all the sold products.
In 2013 the world produced over 87 million vehicles. In 2013 the world bought under 69 million of these produced vehicles. That leaves over 18 million vehicles to be be recycled. So the cost of the original manufacturing and the subsequent recycling is added to the next year sales price.
http://www.zerohedge.com/news/2014-0...ld-cars-go-die
In the USA a good tell is the automotive industry. The manufacturers produce vehicles in excess of demand and the result is recycling these vehicles as the companies can not debase their pricing structure. This is true with many products as the recycling or disposal cost adds to the price of all the sold products.
In 2013 the world produced over 87 million vehicles. In 2013 the world bought under 69 million of these produced vehicles. That leaves over 18 million vehicles to be be recycled. So the cost of the original manufacturing and the subsequent recycling is added to the next year sales price.
http://www.zerohedge.com/news/2014-0...ld-cars-go-die