Throughout the 1990's the United States economy was consistently on the rise.

With stagnant wages and feelings of job insecurity consumers are less likely to start spending more due to both future planning and incurred debt. These factors along with a heightened consumer price index, an average measurement of consumer goods and services, have taken the previous role of the consumer as a savior away and there is no new savior available.

Because of overpriced raw materials businesses are now stuck with products whose production costs creates products that are more expensive. These businesses cannot pass on these prices to the consumer because of their current condition so the businesses profits are being cut into. This reduction in profits lowers workers wages and/or creates layoffs and unemployment, which means less disposable income for consumer.

The increase of average prices within the domestic market is a sign that the threat of inflation, an increase in the average prices of goods/services, is looming over the U.S. economy. If in fact the economy does go into inflation present consumer wages will create less purchasing power for the more expensive goods or services.

Economists are saying that in the postwar period there will be a resurgence in consumer confidence and all will be well in the economy again. However, in case of a longer war then foreseen, consumer confidence and spending rates must be increased in order to stay clear of inflation and remove the U.S. economy from this present "recession. President Bush's recent tax cut plans would put more money into the hands of the individual consumer and also would allow business to relieve some of their economic stresses and hopefully reestablish a sense of job security. No matter the state of the economy the consumer will always play a key role in either reinventing a strong economy or keeping one.