The good news first. The slowdown in the Chinese economy and lower commodity prices mean more money for the consumer in the West.
“What happens to the overall world economy depends on whether the boost to income and spending of the consumer will outweigh the hit to the income and spending of the producers,” says Diana Choyleva, chief economist of Lombard Street Research.
While mining companies like Anglo American PLC and commodity traders like Glencore PLC are suffering, consumers are enjoying lower prices, especially regarding gasoline.
U.S. disposable income has gotten a boost from low commodity prices St. Louis Fed
