Different Wealth Effects and other Drivers of Consumption

• “Ownership” type capital gains: IPO proceeds, employee stock options, and some severance.
• Wealth effect from “arms-length” investor capital gains.
• Wealth effect from home-owner gains.
• One-time expenditures for a new job—car and clothes
• One-time expenditures related to house purchase; furniture, appliances etc.
• High consumer confidence from low inflation and unemployment.
• CONCLUSION: Consumption growth has slowed, but needs continuing drag from the above to stay down

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