US Retail Sales Decline in July-Up Over a Year-A Chance to Reflect on How we are

U.S. retail sales declined recently, and that seems to align with some other economic indicators. However, putting it into perspective, retail sales are still higher than they were a year ago, so that is not necessarily a bad thing. The direction and size of the decline, particularly when considered alongside other economic indicators, could become important, but we need to wait and see how the trend develops (Consumer sentiment appears down as well.)

As an individual indicator, the decline doesn't appear to be particularly negative. A decline is a decline, but it needs to be viewed in conjunction with other economic factors. Businesses will obviously be affected by changes in consumer spending, especially small businesses. If we want to bring our downtowns back, one way we can help is by supporting local businesses (Think about what is being said in terms of if you are being more reflective of your spending habits consider the lens of what helps your community the most. Its a personal choice.). 

If you feel inclined, go buy from your small-town businesses and give them more opportunities to grow. Be wise about where you're spending your money because your money determines what you value and what is rewarded in the market. It can help to support businesses where the money circulates locally increasing its long-tail value. While you might be spending less you can also spend it where it maximizes its outcome (The other day I bought my produce from the OB farmers market because it goes directly back to local farmers.)

U.S. Retail Sales Show Continued Year-Over-Year Growth but Decline in July

• U.S. retail and food services sales were an estimated $763.6 billion in July 2026.
• Sales decreased 0.6% from June 2026 after seasonal, holiday, and trading-day adjustments.
• Despite the monthly decline, sales increased 5.0% compared with July 2025.
• Total sales for May through July 2026 were 6.3% higher than the same period a year earlier.
• Retail sales are an important indicator of consumer spending and economic activity. The Census Bureau's advance estimates are also used by organizations such as the Bureau of Economic Analysis and Federal Reserve to assess economic trends.

U.S. Census Bureau. (2026, August 14). Advance monthly sales for retail and food services: July 2026. https://www.census.gov/retail/sales.html

UoM Survey of Consumers Indicates a Decline in Consumer Confidence But....

 Consumer sentiment declined and this in line with other mixed markers could indicate a market change but we will have to wait to see what that looks like (or doesn't.). The thing about metrics is that they are representations based on how they are designed and how the data is drawn. As representations they are open to interpretation and you will find economists with varying opinions.

University of Michigan Surveys of Consumers: A Key Measure of Consumer Confidence

• The University of Michigan Surveys of Consumers, established in 1946, measure consumer attitudes, expectations, and perceptions about the U.S. economy.
• The survey examines consumers’ views of personal finances, business conditions, and buying conditions, including expectations for inflation, unemployment, interest rates, and economic policy.
• Consumer expectations are economically important because optimism can encourage spending and borrowing, while uncertainty and pessimism can lead households to postpone purchases and increase savings.
• The survey is widely used by government agencies, financial institutions, businesses, and researchers and contributes to measures of leading economic indicators.
• The preliminary August 2026 results show consumer sentiment falling 7.6% from July to 51.0, while the Index of Consumer Expectations declined 8.7% to 50.6. Year-ahead inflation expectations also increased slightly from 4.2% to 4.3%.

University of Michigan, Institute for Social Research. (2026). Surveys of Consumers. https://www.sca.isr.umich.edu/

Row Row Row Your Boat-Right Down Mission Bay! The Health Benefits of Rowing

I recently got back to San Diego this week, and one of the things I wanted to do was keep up with my rowing. One of these days, I'm going to buy a sculling shell—or maybe even build one—and keep it in Escanaba. For now, though, I mostly row here in San Diego where a club offers the shell to use.

(Illustrative Only)

I used to row in Louisville, Kentucky, and I may end up doing that again at some point. I'm certainly not the world's greatest rower, but I really enjoy it. It gets me out on the water early in the morning, and then I can move on with the rest of my day.

There's also a physical challenge to rowing that I appreciate. If you work online or spend a lot of time sitting at a computer in your office, it's easy to become a little lethargic. Rowing gets you moving and provides an excellent full-body workout. That's one reason people who row regularly tend to be in very good shape—it combines cardiovascular exercise with strength and muscle development throughout the body.

For me, I simply like doing things that are fun. If they also help me stay healthy and in shape, that's an added bonus.

I'm also a licensed fitness trainer and yoga instructor. If you're ever looking for a little help with fitness or flexibility, feel free to send me a message. I can provide some virtual guidance as a hobby. I donate a little away. 

Anyway, send me a message if you're interested. I also thought the article and video below were pretty interesting. I watch material like this because I'm always trying to improve my rowing and learn something new. No matter what activity I'm involved in, I enjoy continuing to learn and get a little better over time.

Rowing Technique

Producer Prices Unchanged in July 2026-What does the PPI indicate for the Economy?

The Producer Price Index (PPI) helps us understand the prices producers can receive for the products they sell. The metric covers domestic production across major economic sectors. Higher producer prices can eventually be passed on to consumers, creating inflationary pressure. A lower PPI generally indicates less inflationary pressure and can minimize the likelihood of additional interest rate increases.

A lower PPI can contribute to increased business profits, lower inflation, and potentially greater innovation through investment. Lower input costs and higher profit generally attract new investment. New investment and costs are interwoven into the economic and business environment. (Keep in mind the concept we are exploring in this blog regarding transaction costs and how the right environment can reduce the costs associated with innovation and inputs, making businesses more attractive for investment. In Theory...meaning take or leave it....either is ok. Businesses can cluster in different ways, either vertically, with a focus on specific types of businesses i.e., an industry-focused cluster within a larger city, and/or more organically, through clusters of diverse but co-complementary businesses that may be particularly beneficial for economic resilience of smaller communities.)

You can read about PPI and its impact on PPI and how it works. Producer Price Index (PPI) Explained: Comprehensive Guide & Analysis

Over the past few years.

Producer Prices Unchanged in July 2026, While Annual Wholesale Inflation Remains Elevated

• The Producer Price Index (PPI) for final demand was unchanged in July 2026 after declining 0.1% in June and increasing 0.5% in May.
• Despite no monthly increase, final-demand producer prices were 4.7% higher than a year earlier, indicating that inflationary pressures remain elevated at the producer level.

• 

  Source

  Final-demand services increased 0.2% in July, while construction prices rose 2.2%. These increases offset a 0.7% decline in final-demand goods.
• Energy prices provided significant downward pressure, with final-demand energy prices falling 3.1% and gasoline prices declining 5.7%. Food prices also decreased 0.9%.
• The broader measure excluding foods, energy, and trade services increased 0.4% in July and was up 4.7% over the previous 12 months, suggesting that underlying producer-price pressures remain persistent.

U.S. Bureau of Labor Statistics. (2026, August 13). Producer price indexes—July 2026. U.S. Department of Labor. https://www.bls.gov/news.release/ppi.nr0.htm

CPI Increases .1% Showing Signs of Inflation Moderation

The Consumer Price Index, or CPI, moderated a little in July, meaning the pace of price increases slowed. The CPI increased 0.1% in July after declining 0.4% in June, while prices were up 3.4% over the previous 12 months.

Although inflation is beginning to ease, prices remain elevated, and many people are still struggling to pay their bills and living paycheck to paycheck. It is not easy—I have been there, done that. Food prices increased 3.0% over the past year, while shelter increased 3.2%, so hopefully we will continue to see these areas moderate as well.

Overall, the latest report provides some positive signs, but consumers are still feeling the effects of higher prices. I have included the article below, along with the original source and a summary of the information. 

I like this review article, 

Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4%

Consumer Price Index Shows Moderate Inflation in July 2026

• The Consumer Price Index (CPI) for All Urban Consumers increased 0.1% in July 2026 after declining 0.4% in June. Over the previous 12 months, consumer prices increased 3.4%.
• Shelter prices increased 0.1% in July and accounted for approximately two-thirds of the overall monthly CPI increase. Food prices also rose 0.1%.
• Energy prices provided some relief, declining 1.5% in July. However, energy prices were still 14.7% higher than they were one year earlier.
• Core inflation, measured by prices excluding food and energy, increased 0.2% in July and was up 2.5% over the previous 12 months, down from 2.6% in June.
• Overall, the July report suggests that inflation continued to moderate compared with June, although prices remained elevated in several areas. Food increased 3.0% and shelter increased 3.2% over the year, demonstrating that consumers continued to face meaningful increases in everyday living costs.

U.S. Bureau of Labor Statistics. (2026, August 12). Consumer price index—July 2026. U.S. Department of Labor. https://www.bls.gov/news.release/cpi.nr0.htm

Purpose of Institutions-Nationalism and Patriotism-The Allegory of the Clan

 Imagine, for a moment, that you discovered serious wrongdoing, but the wrongdoing was shielded and protected. The doors to reporting were blocked, and those who attempted to report it faced swift retaliation. Coordinated sustained harm over a number of years. It did not matter how many people were aware of the conduct or how many victims were affected because decision-makers operated according to particular ideologies and perceptions about the purpose of the institution. The behavior was clearly alleged to be illegal, unconstitutional, and rooted in extreme racial or religious bias. Yet, rather than correcting the misconduct, greater effort seemed to be devoted to protecting those involved from accountability. This raises a troubling question: Is the objective truly justice, or is it the preservation of ideology and clan interests?

This is where we use a hypothethetical, philosophical thought experiment to explore. Take with a grain of salt and come to any conclusion you so desire. 

In the Allegory of the Clan, the coordination was significant. A closed clan system sought to teach victims the lessons of how the system "really works," rather than the ideals that had been passed down from generation to generation. This creates a philosophical divergence. Some may view Law and Order as a mechanism for promoting and protecting their particular values, while others may view Law and Order as a means of preserving broader societal values, fairness, and justice. From this perspective, nationalism and patriotism become important concepts to examine.

Within the Allegory of the Clan, there were clear signs of nationalism and forced adherence to alleged misconduct. Perceived surface cultural violations brutally punished (Remember that culture if fluid with each generation but sharing a line because it transfers cross generational values. As an example for discussion Philosophical-Logical Systems Remember the whole blog is for philosophical thought so if it makes you reach then it has done its job.). The group was aware of information manipulation, isolating elderly for financial gain, false accusations, placing children at risk (undermining both parents), and the potential for violence against victims. The perpetrators had no boundaries and the courts supported that as long as it was against minority members. Good officials expected to fall in line and intellectuals openly silenced through threats. 

Hightenting the problem, some members had allegedly engaged in similar behaviors for years not only to those victims but others. The troubling question is whether the institution's purpose became protecting itself rather than serving the greater good and supporting justice. From a highly nationalistic perspective, victims can become disposable, their experiences dismissed through convenient narratives, and meaningful avenues for recourse effectively eliminated. The laws are used to harm, narratives are used to justify, but the behaviors are clearly plays of technicalities to protect serious social contract violations.

This can create the equivalent of a second-class citizen: someone with fewer practical rights, limited access to justice, and little institutional protection. Narratives about such individuals can be shaped by religious prejudice, racism, nationalism, or other forms of identity-based hostility. Our principles do not allow us to judge others by these metrics. Those making the decisions may sincerely believe their choices are justified because their perception of reality is filtered through a distorted understanding of identity and belonging. History proves them wrong here and in other places. 

The deeper irony is that those claiming to defend the institution may themselves fail to embody the values they claim to protect. Identity based justifications.Their own ancestry, religious traditions, or connection to the sacrifices of previous generations may be less relevant than the identity they have constructed for themselves. Yet they position themselves as the legitimate guardians of society, institutions, or the culture. Under their own logic others might have more rights then themselves if they supercede them on these self-benefiting metrics (These are distorted metrics while merit is a purer form). They may have been here longer, reflect the religious values better than, and are connected to the early formation of a nation much more then the nationalists (or not. Ultimately it doesn't matter except for in group management and manipulation.). 

(All behavior is goal directed. The mirror of behavior indicates that they were making decisions rooted in identity, social networks, and normalized corruption. A pattern easily repeated but learned in other places.)

(illustrative only)
See analysis below.

That is the central tension in the Allegory of the Clan: when loyalty to the clan, institution, or ideology becomes more important than the principles of justice, Law and Order can cease to function as a protection for society and instead become a mechanism for protecting the powerful or in-groups. Patriotism and nationalism are interchanged, and institutional loyalty can become a justification for abandoning the very values the institution was created to preserve. Remember this that nationalism is identity focused and patriotism is value focused. Both are ways to run a system but only one will help you reach the highest levels. Feel free to adjust the elements and come to the conclusion you desire. 

Let us say that the behaviors continue because they silenced victims, played games with their rights and victim dumped. Think if some of the motivations when principles are replaced through identity.

What is Nationalism?

*The Allegory of the Clan is for illustrative purposes as a philosphical thought experiment. 

This is an explanation of symbolism. Understanding symbolism helps us tape into the deeper meaning of words and concepts.

AI explained the picture created this way......

That is a powerful political allegory. The imagery neatly captures the subtle boundary—and common root—between two concepts that are constantly debated in political philosophy.

Here is a breakdown of what makes this scene and its central thesis so compelling:

Unpacking the Imagery

• The Eagle-Headed Cane & Black Suit: The eagle represents state authority, sovereignty, and historical power. The black suit grounds the figure in solemnity and institutional weight—he speaks not just as an individual, but as a representative of political tradition.

• The "Pick a Hand" Gesture: This is the core motif. Like a magician asking an audience to pick a hand, the speaker presents Patriotism in one hand and Nationalism in the other as if they are fundamental opposites. But both hands belong to the same body, guided by the same intent.

• The Captivated Audience: Highlights how deeply invested people are in choosing the "right" label, seeking to embrace civic pride while rejecting aggressive chauvinism.

Two Lenses of the Same Phenomenon

Philosophers and political theorists often try to draw a sharp line between the two concepts:

• Patriotism is defined as affection for a way of life and a place, fundamentally defensive in nature.

• Nationalism is defined as the desire for power and self-assertion, inherently competitive and aggressive.

Why They Are "Two Lenses"

The premise in your scene argues that despite these definitions, both arise from the exact same psychological and social impulse: in-group identity tied to the modern nation-state.

Dimension	Viewed through the "Patriotism" Lens	Viewed through the "Nationalism" Lens
Core Motivation	Love of one's culture, land, and shared civic values.	Devotion to the sovereign strength and dominance of the nation.
Boundary	"We value our shared community."	"We define ourselves against the outsider."
Expression	Civic participation, honoring heritage, pride in institutions.	Border emphasis, priority of national interest above global ties.
Underlying Mechanism	Human need for collective belonging and shared history.	Human need for collective belonging and shared history.

Social Innovation Theory-Entrepreneurship and Wealth Distribution

 Let’s talk about social innovation theory. We often think of economics and social issues as being separate, but in reality, they are interconnected and influenced by many of the same core behaviors.

For example, let’s say you want to achieve a broader distribution of wealth and bring communities back as the center of social and business life. Downtowns were created in many cases to serve that purpose. By fostering small businesses, you can distribute wealth more broadly across a community, but you can also increase innovation, investment, and economic activity.

Developing an entrepreneurial community relies, in part, on the social side of development—how people share ideas, connect those ideas, collaborate, and work together to build new businesses. It also involves creating access to financing and other resources that allow those businesses to grow. A type of broad based capitalism where wealth circulates more freely at a more community level.

So, if the goal is to reduce the concentration of wealth, one approach is to foster small businesses and place them in environments where they can grow and succeed socially as well as economically. When people are connected, ideas are shared, businesses develop, and communities become stronger, those social relationships can contribute directly to economic development.

Anyway, take a look at the article below. It’s an interesting discussion of how new ideas and approaches to solving problems can develop, spread, and lead to innovation.

Social Innovation Theory: Creating Sustainable Solutions to Complex Social Problems

• Social innovation focuses on developing new products, processes, or approaches that address persistent social problems while creating meaningful value for communities.
• Effective social innovation depends on collaboration among governments, nonprofits, businesses, social enterprises, and community members rather than relying on one organization alone.
• The article highlights systems change and collective impact as important models because they encourage stakeholders to work together to address underlying social structures rather than simply treating individual symptoms.
• Community involvement, diverse perspectives, data-driven decision-making, sustainability, and strategic partnerships can improve the effectiveness and legitimacy of social innovation initiatives.
• A major challenge is measuring and scaling social innovation. Successful initiatives must demonstrate measurable social value while adapting their solutions to different communities and institutional environments.

Impact Dots. (n.d.). The social innovation theory: Understanding fundamentals. https://impactdots.com/blog/the-social-innovation-theory-understanding-fundamentals/