Wal-Mart Says Shoppers Out of Money

We heard reports a few months ago that the busiest shopping day at Wal-Mart was the first day of the month because that's the day when the 44 million Americans on government assistance all got money put on their food stamp cards.

Now Wal-Mart is reporting that their shoppers are running out of money.

NEW YORK (CNNMoney) -- Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

"We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact."

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they're "running out of money" at a faster clip, he said.

"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.

See it here; http://money.cnn.com/2011/04/27/news/companies/walmart_ceo_consumers_under_pressure/index.htm

Remember when the government had Cash for Clunkers Program and the car market heated up....until the "free money" was done...and then the market sunk again?

Remember when the government had an $8000 First Time Home Buyers program to entice people to buy homes....and when the "free money" was gone.....the housing market fell right back into the tank?

Now let's ask ourselves....when the government quits handing out "free money" every month to 44 million Americans to spend at Wal-Mart to buy food.....what do you think may happen to retail spending?

"But Dennis", some will say, "we can't quit giving that money to those 44 million people, because they and their families rely on that free money to feed themselves!"

Yes, I totally understand.  And when the Federal Government has NO MORE FREE MONEY TO GIVE.....then what do YOU believe will happen when 44 million people and their families start looking for ways to feed themselves?