--- title: "Meaning & Key Takeaway of: Consumer spending is now plunging at…" description: "\"Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy..." image: "https://sms4smile.com/quotes/i/926/paul-krugman-2255_consumers_consumer-spending-is-now-plunging-at-ser_1333150.jpg" --- # Consumer spending is now plunging at serious-recession… ![“Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy has immense downward momentum. In addition to financial rescues, we need major stimulus programs.” quote by Paul Krugman](https://sms4smile.com/quotes/i/926/paul-krugman-2255_consumers_consumer-spending-is-now-plunging-at-ser_1333150.jpg) [Download](https://sms4smile.com/quotes/i/926/paul-krugman-2255_consumers_consumer-spending-is-now-plunging-at-ser_1333150.jpg) [Open image](https://sms4smile.com/quotes/i/926/paul-krugman-2255_consumers_consumer-spending-is-now-plunging-at-ser_1333150.jpg) > “Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy has immense downward momentum. In addition to financial rescues, we need major stimulus programs.” [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Economic downturns require both financial rescues and large fiscal stimulus to counteract deep recessionary forces. **In simple terms:** Rescues alone aren't enough; stimulus needed. Key Takeaway Combine rescue with stimulus for recovery. Themes economics recession policy government spending Mood concerned analytical Type policy economic When to use this quote - government budgeting - business planning - consumer confidence Key Concepts Fiscal policy monetary policy macroeconomic stabilization Questions to Reflect On - What balance of rescue and stimulus is optimal? - How to prevent long‑term debt burdens? A Different Perspective Stimulus may increase debt and inflation risk. ★ ★ ★ ★ ★ No ratings yet [Consumers](https://sms4smile.com/quotes/about/consumers/) [Credit](https://sms4smile.com/quotes/about/credit/) [Customer](https://sms4smile.com/quotes/about/customer/) [Economics](https://sms4smile.com/quotes/about/economics/) [Economy](https://sms4smile.com/quotes/about/economy/) [Investing](https://sms4smile.com/quotes/about/investing/) [Momentum](https://sms4smile.com/quotes/about/momentum/) [Recession](https://sms4smile.com/quotes/about/recession/) [Recessions](https://sms4smile.com/quotes/about/recessions/) [Train](https://sms4smile.com/quotes/about/train/) ## Related quotes > [Actually, I have been very supportive of a very robust stimulus package from day one. 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I thought about it and decided not to take part.](https://sms4smile.com/quotes/sam-walton/i-was-asked-what-i-thought-about-the-recession-i-thought-about-it-and/) [Sam Walton](https://sms4smile.com/quotes/author/sam-walton/) > [You don't run a business hoping you don't have a recession.](https://sms4smile.com/quotes/jamie-dimon/you-don-t-run-a-business-hoping-you-don-t-have-a-recession/) [Jamie Dimon](https://sms4smile.com/quotes/author/jamie-dimon/) > [Like other presidents before him, Barack Obama inherited a recession. But unlike them, he has made it worse, not better.](https://sms4smile.com/quotes/mitt-romney/like-other-presidents-before-him-barack-obama-inherited-a-recession/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [In a recession, you must be able to call into question everything you've done before.](https://sms4smile.com/quotes/francois-henri-pinault/in-a-recession-you-must-be-able-to-call-into-question-everything-you/) [Francois-Henri Pinault](https://sms4smile.com/quotes/author/francois-henri-pinault/) > [A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you've lost your trousers…](https://sms4smile.com/quotes/adam-thomson/a-recession-is-when-you-have-to-tighten-your-belt-depression-is-when/) Adam Thomson > [When George Bush finally leaves the White House, the satire industry will briefly join the rest of the economy in recession. 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Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) ## More by Paul Krugman > [People who are complaining about the Fed are people who've been predicting runaway inflation for five and six years, and it hasn't happened.](https://sms4smile.com/quotes/paul-krugman/people-who-are-complaining-about-the-fed-are-people-who-ve-been/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [Surely I'm not the only person to ask the obvious question: How different, really, is Mr. Madoff's tale from the story of the investment…](https://sms4smile.com/quotes/paul-krugman/surely-i-m-not-the-only-person-to-ask-the-obvious-question-how/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [“The rich are different from you and me: they have more influence.”](https://sms4smile.com/quotes/paul-krugman/the-rich-are-different-from-you-and-me-they-have-more-influence/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [“The Internet’s impact on the economy has been no greater than the fax machine’s….ten years from now, the phrase “information economy” will sound silly.…](https://sms4smile.com/quotes/paul-krugman/the-internet-s-impact-on-the-economy-has-been-no-greater-than-the-fax/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [Not all private equity people are evil. 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But anyone who cares about retaining…](https://sms4smile.com/quotes/paul-krugman/it-s-not-about-the-budget-it-s-about-the-power-so-will-the-attack-on/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [When stock prices are rising, it's called ''momentum investing''; when they are falling, it's called ''panic.''](https://sms4smile.com/quotes/paul-krugman/when-stock-prices-are-rising-it-s-called-momentum-investing-when-they/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [I don't want a job in the administration; I think I'm more effective carping from the sidelines.](https://sms4smile.com/quotes/paul-krugman/i-don-t-want-a-job-in-the-administration-i-think-i-m-more-effective/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [Under the gold standard America had no major financial panics other than in 1873, 1884, 1890, 1893, 1907, 1930, 1931, 1932, and 1933.](https://sms4smile.com/quotes/paul-krugman/under-the-gold-standard-america-had-no-major-financial-panics-other/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) [Explore all 175 Paul Krugman quotes ](https://sms4smile.com/quotes/author/paul-krugman/) ## More Consumers quotes > [One of the worst things to come out of the Consumer Protection Board's misleading claims is the impression that government resources are to hard…](https://sms4smile.com/quotes/matthew-lesko/one-of-the-worst-things-to-come-out-of-the-consumer-protection-board/) [Matthew Lesko](https://sms4smile.com/quotes/author/matthew-lesko/) > [Eventually the consumer will come to appreciate the editorial point of view of every different brand. User-generated content without editorial oversight will simply be…](https://sms4smile.com/quotes/michael-eisner/eventually-the-consumer-will-come-to-appreciate-the-editorial-point/) [Michael Eisner](https://sms4smile.com/quotes/author/michael-eisner/) > [I've always considered making it legal for Americans to import their prescription drugs a free-trade issue. Imports create competition and keep domestic industry more…](https://sms4smile.com/quotes/chuck-grassley/i-ve-always-considered-making-it-legal-for-americans-to-import-their/) [Chuck Grassley](https://sms4smile.com/quotes/author/chuck-grassley/) > [“In a world where consumers had limited choice, you needed to compete for locations,” says Ross, who went on to cofound eCommera, a British…](https://sms4smile.com/quotes/brad-stone/in-a-world-where-consumers-had-limited-choice-you-needed-to-compete/) [Brad Stone](https://sms4smile.com/quotes/author/brad-stone/) > [The capitalistic social order, therefore, is an economic democracy in the strictest sense of the word. In the last analysis, all decisions are dependent…](https://sms4smile.com/quotes/ludwig-von-mises/the-capitalistic-social-order-therefore-is-an-economic-democracy-in/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [A brand is no longer what we tell the consumer it is it is what consumers tell each other it is. - Scott Cook,…](https://sms4smile.com/quotes/scott-cook/a-brand-is-no-longer-what-we-tell-the-consumer-it-is-it-is-what/) [Scott Cook](https://sms4smile.com/quotes/author/scott-cook/) > [Now that I'm more middle class, I have access to consumer goods. I do enjoy feminine frippery, feminine doo-da, stuff like that.](https://sms4smile.com/quotes/shirley-geok-lin-lim/now-that-i-m-more-middle-class-i-have-access-to-consumer-goods-i-do/) [Shirley Geok-lin Lim](https://sms4smile.com/quotes/author/shirley-geok-lin-lim/) > [Why is Caterpillar bad if we create a new job in India or China to receive U.S. exports? It makes no sense to me.…](https://sms4smile.com/quotes/douglas-r-oberhelman/why-is-caterpillar-bad-if-we-create-a-new-job-in-india-or-china-to/) [Douglas R. Oberhelman](https://sms4smile.com/quotes/author/douglas-r-oberhelman/) > [America always put forth this phony melting pot theory, but it's a reality now. 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A scale of taxes on imports, designed to protect the domestic producer against the greed of his consumer.](https://sms4smile.com/quotes/ambrose-bierce/tariff-n-a-scale-of-taxes-on-imports-designed-to-protect-the-domestic/) [Ambrose Bierce](https://sms4smile.com/quotes/author/ambrose-bierce/) [Browse all 1,606 Consumers quotes ](https://sms4smile.com/quotes/about/consumers/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy has immense downward momentum. 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