Bob Elliott
· Nonconsensus
· February 10, 2026 at 11:17
· ⏱ 3 min read
| Read on Substack ↗
Summary
=== SUMMARY ===
•The US economy is experiencing a "jobless expansion" where strong consumer demand is driven by households drawing down savings ("dissaving"), not by income or wage growth.
•This trend is sustainable in the medium term because household net worth is near all-time highs, creating a powerful wealth effect that fuels spending.
Summary
The author argues that US household demand remained strong at the end of the year, not due to robust income or job growth, but because households are dissaving (spending down their savings). The article highlights the importance of upcoming economic data, particularly the employment report, CPI, and retail sales, to gauge the sustainability of this trend.
•Household demand has been firm despite weak growth in jobs and income.
•This demand is being fueled by dissaving, meaning households are spending their savings.
•Key upcoming economic data points like the employment report, CPI, and retail sales are critical for understanding the economic outlook.