Bought and sold: Americans cut back on spending last month while their income remained flat, according to a Commerce Department report out today. The weakness in part reflected disruptions from Superstorm Sandy that could slow economic growth for the rest of the year. Consumer spending dropped 0.2% in October. It was the weakest figure since May, and compares unfavorably with a 0.8% spending increase in September. Income had risen 0.4% in September. More details are available in the full story here.
About-face: Facebook Inc. is finding out just how messy democracy can be. Three years ago it was praised for giving users a voice in major policy changes. Now the giant social network is proposing to end the practice of letting users vote. And that has stirred up a new wave of controversy. Julius Harper, a digital strategist from Valencia, Calif., says he is “hugely disappointed” that Facebook wants to take away his right to vote, and he accuses Facebook of bowing to pressure from Wall Street. The Los Angeles Times has the full story here.
Taking it to the streets: President Barack Obama, reviving his re-election campaign theme of protecting the middle class, is in Pennsylvania today suggesting that Republicans could spoil Christmas by driving the country over the “fiscal cliff.” The president’s road trip, visiting a factory that makes Tinkertoys, is infuriating Republicans. House Speaker John Boehner called it a “victory lap” Thursday as he rejected Obama’s proposals to avoid the cliff, which is a combination of tax increases and spending cuts set to take effect in January. Reuters has the full story here.
