While consumer spending once helped keep the economy healthy, rising consumer debt is the reason it’s getting sick. The root cause of the current economic slowdown in the U.S. goes back several decades, according to an economics professor at Washington University in St. Louis.
Every week you see it: the local supermarket’s specials include a discount on Brand X tuna fish. Common knowledge assumes that a sale on tuna fish will induce more people to buy Brand X, which boosts profits for both the manufacturer and the grocery store. However, a recent study by professors in the Olin School of Business at Washington University in St. Louis has found that discounts are not always in the best interest of the retailer or manufacturer. In fact, some promotions may end up hurting future profitability.