@Sunshine31 -I agree and I have to say that the purchasing power also increases when the availability of jobs increase. When more people are working our purchasing power goes up because people have disposable income to spend.
For example, China’s purchasing power is great because not only is the country almost at full employment but they have very little debt and have one of the largest populations in the world. Our GDP purchasing power has fallen a bit because of our increased debt.
It is almost like having your credit cards maxed out. You can’t charge anymore until you pay down your balance. I also heard that the economy in India is improving so much so that India’s purchasing power has allowed for new products to be tested in their market. They recently tested a small car that retailed for $3,000 that is revolutionizing the Indian economy because the Indian people have more disposible income to spend than ever before.
I think that when we start to see economic growth in the United States by the increase in available jobs, our purchasing power as a nation will be back to normal levels. We just have to keep an eye on the spending levels.