No, Retail Sales Growth Didn’t Slow Because of Coronavirus Cases

From the Wall Street Journal:

U.S. shoppers boosted their buying in October for the sixth month in a row, but the pace of growth slowed considerably amid rising coronavirus cases and uncertainty ahead of the U.S. presidential election. Retail sales increased a seasonally adjusted 0.3% in October from a month earlier, the Commerce Department said Tuesday. That fell short of economists’ expectations for a 0.5% rise, and was well below the 1.6% gain in September.

Is this really true? I doubt it:

I’ve mentioned this before, but retail sales are growing now at the same rate they were growing before the pandemic. The reason they’re leveling off is because they have no choice. There’s really no way they can sustain a growth rate higher than the trendline.

This business of constantly trying to explain a single month’s (or day’s) movement in some economic indicator has an ancient lineage, but we really ought to knock it off. The Journal has no more idea of why retail growth flattened than you or I do. What’s more, even a fleeting glance at a chart should suggest that there was no external cause at all. It’s just a matter of how much money people have.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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