... continue to rise consumer demand will fall. With stagnant wages and feelings of job insecurity consumers are less likely to start spending more due to both future planning and incurred debt. These factors along with a heightened consumer price index, an average measurement of consumer goods and services, have taken the previous role of the consumer as a savior away and there is no new savior available. Because of overpriced raw materials businesses are now stuck with products whose production costs creates products that are more expensive. These businesses cannot pass on these prices to the consumer because of their current condition so the businesses profits are being cut into. This reduction in profits lowers workers wages and/or creates layoffs and unemployment, which means less disposable income for consumer. The increase of average prices within the domestic market is a sign that the threat of inflation, an increase in the ...

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