Thursday, March 5, 2009

Wal Mart Sales Up 5%

Wal-Mart Stores Inc. reported a higher-than-expected 5.1 percent rise in February sales at U.S. stores open at least a year. Analysts on average were expecting the company's same-store sales to increase 2.4 percent, according to Thomson Reuters estimates.

Wal-Mart sales up and movie sales skyrocketing, in the middle of a recession! There ought to be a theory that explains this sudden surge in the demand for consumer basics. Oh yeah, ABCT does:

The "boom," then, is actually a period of wasteful misinvestment. It is the time when errors are made, due to bank credit's tampering with the free market. The "crisis" arrives when the consumers come to reestablish their desired proportions. The "depression" is actually the process by which the economy adjusts to the wastes and errors of the boom, and reestablishes efficient service of consumer desires.. In sum, the free market tends to satisfy voluntarily-expressed consumer desires with maximum efficiency, and this includes the public's relative desires for present and future consumption. The inflationary boom hobbles this efficiency, and distorts the structure of production, which no longer serves consumers properly. The crisis signals the end of this inflationary distortion, and the depression is the process by which the economy returns to the efficient service of consumers.

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