Consumer Credit Increase-July 2026

The Federal Reserve just released the July 2026 Consumer Credit Report. Consumer credit increased at a seasonally adjusted annual rate of 4.2% ($18.1 billion increase), with revolving credit increasing 2.5% and nonrevolving credit increasing 4.8%. 

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Representing...
More credit
means more
nuts can be bought.
Until....😟🙃

So, basically, what we're saying is that consumer credit has expanded somewhat. That can be a helpful sign for an economy where a large proportion of GDP is based on consumer spending because more credit can mean more buying, more sales, and, of course, more revenue from a business standpoint.

Where we spend that money and how that money is spent is important, though, because credit is debt. As interest rates rise, there's always a risk of increased defaults in the future if income and other factors do not rise enough to support those debt payments (Think of the unsustainability of our national debt running a similar process. We are addicted to credit.). 

Alternatively, people may in the future spend too much and rein in their borrowing and become more fiscally conservative, which could lead sometype of slow down or contraction in the future. That depends on how much money, inflation, interest rate. But there are many factors involved, so we don't really know what will happen. It's just a possibility.

So, overall, this is probably good news, at least in the short term. In the long term, however, a lot of people are already have high debt so just keep it in perspective.

We also need to consider where we spend that money. If we spend it in the U.S. on U.S.-manufactured goods, that's going to have an impact. If we spend a lot of that money in our downtowns, local businesses, manufacturers, and farmers, that's also going to have an impact on how many times that money circulates through the local economy—the long tail of behavior. Improving our manufacturing base helps keep that money more regionally.

Anyway, read below to better understand consumer debt and the expansion of consumer credit, which could lead to more buying and a boost to the economy, at least in the short run.

Consumer Credit - G.19

Consumer credit increased 4.2% annualized in July 2026.

Revolving credit, primarily credit cards, rose 2.5%.

Nonrevolving credit, including auto and student loans, rose 4.8%.

Total consumer credit reached about $5.19 trillion.

Credit-card interest rates remained high, averaging about 21%.

Overall, borrowing continued to grow, but high interest costs remain a concern for households.

Small Business Conditions and Economic Outlook August 2026

Small business conditions have weakened a little bit over the last month. Pay attention to these reports because they provide insight into what businesses are facing, the challenges they are experiencing, and where they are doing well.

NFIB Small Business Economic Trends Report

In this case, optimism went down a little bit. Labor remains an issue, which is why training employees, education, and similar efforts can improve labor capabilities. Technology also has an impact on this. Inflation remains an issue for businesses, and expectations for improved business conditions have declined somewhat. Overall, there is a little more pessimism in the market.

However, it is important to watch these trends over time, including year-over-year changes, because a short-term snapshot can be misleading. If the overall score is still above its historical average, a small monthly decline may not necessarily indicate a significant deterioration in business conditions.

Small Business Conditions and Economic Outlook in August 2026

• Small-business optimism declined to 98.7 but remained above the long-term average of 98.0.
• Sales weakened, with a net -9% of owners reporting higher nominal sales over the previous three months.
• Labor availability remained the top business concern, with 23% identifying labor quality or availability as their most important problem.
• Inflation continued to pressure businesses, with 16% identifying it as their most important problem and 31% reporting higher selling prices.
• Expectations for improved business conditions declined to a net 10%, although this remained above the historical average of 4%.

National Federation of Independent Business Research Center. (2026, September 8). Small Business Optimism Index: August 2026. NFIB. NFIB Small Business Economic Trends Report

Simple Performance Shirts with Shorts in Men's Fashion

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When you got
your own fashion 
show going on. 🙃

Recently, while updating some of my profile, I bought a couple of these shirts and already had the tan shorts in my sailing and beach wardrobe.

I looked around to see if I could find the shirts online (See below). A couple of people even complimented the style—and, apparently, the hair was part of the package.

It’s rare to get compliments, but when you get a couple of unsolicited ones, you should probably take them as feedback. So, naturally, I did what any reasonable person would do: I kept the outfit. 😁

This is what I came up with.

Hang Ten Shirt

Tan Shorts

Employment Rates Running Statistics-Federal Reserve Bank of St. Louis

You may be interested in these running and historical employment rates by FRED. I found it online while looking at some other stuff so just thought I would share.  All Employees Fed Reserve

The Broader Economic Costs of Environmental Problems-Tijuana Sewage Issue

 An article recently in the San Diego Union Tribute brought forward an important concern about Coronodo's beach being closed. Other beaches, including those around Imperial Beach, have experienced significant problems, and the Tiajuana sewage issue appears to be an ongoing and growing concern. This has been a long-standing problem, which makes one think about the importance of addressing environmental problems when they first emerge and developing effective, cross-border solutions.

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Beautiful isn't it?
Priorities. 

There are many areas in which society invests its resources. Some investments generate significant returns, while others raise questions about why the resources were allocated in the first place. For this reason, we should continually evaluate where and how resources are being spent because those resources could be used to create greater value for society.

Regardless of the structures we build within society, they all exist within an environment, and that environment is foundational to human health and economic development. The sewage problem illustrates this connection. It can affect public health, local economic activity, property values, tourism, tax revenues, and the overall quality of life in the region. Yet, these costs are not always fully incorporated into decision-making. We think quantitatively but only measure a slice of the issue.

We often approach problems by breaking them into individual components, which is useful for analysis. However, this approach can sometimes cause us to overlook broader costs that were not included in the original calculation. Environmental problems demonstrate why it is important to consider the full economic and social consequences of decisions.

This study below seems particularly interesting in this context. Hopefully, we can eventually find effective solutions to this problem. From an economic perspective, one might rather see resources invested in addressing long-term environmental challenges than in areas where the potential for meaningful returns appears limited. Failing to address these problems can ultimately represent a significant expense of resources and, more importantly, missed opportunities for society.

EPA Tijuana Sewage Update

Tijuana Sewage Longest Lasting

Coronado Beach Closes

Environmental Pollution Control Cost Accounting

• Examines a cost-accounting method for environmental pollution control.
• Uses a discrete probability model to improve accounting accuracy and efficiency.
• The proposed method produced low accounting errors and fast calculation times.
• Results suggest the approach can support more effective environmental cost management and decision-making.

Xu, B. (2022). Cost accounting algorithm of environmental pollution control based on discrete probability. Discrete Dynamics in Nature and Society, 2022, Article 2478920. https://doi.org/10.1155/2022/2478920

2026 Do Small Businesses and Start-Ups Succeed More in Rural Areas (Escanaba's Downtown)

You may want to review this 2026 Small Business Rural and Urban Firms release from the Federal Reserve. It compares rural and urban environments, and I like to think about it in terms of an example such as Escanaba, Michigan, or Delta County versus a larger city due to its coastal nature embedded small city lifestyle (i.e. around 10K a blend of community based small emerging smart city feel.) 

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Where nature and 
opportunity shake
hands for
a shared future. 

What we're finding in a place like this is that they may become increasingy attractive to investment. There may be more interest in having small businesses downtown, more startups, and increased tourism that can pair with existing achor businesses and infrastructure. A number of things seem to be moving in a positive direction. The report also suggests that rural small firms can experience stronger growth and outcomes, both financially and non-financially.

Is it worth it to invest and launch your start-up in a rural place like Escanaba or Gladstone?

It depends on your goals and the way you want to live your life.

So, just thinking about it when we look at the publication below employment and profitability is somewhat higher among rural firms, and many of these businesses obtain financing from local banks, that keeps more of the money circulating locally. Higher opportunities for success could create an incentive for businesses to consider moving to rural communities.

Take Delta County, for example. There's a quality-of-life advantage, a downtown that is beginning to reemerge and thrive, a port, rail, recreational opportunities, and other assets. So it makes sense to consider how small, medium, and large businesses could contribute to that development. There are already a couple of anchor businesses, but how might we attract more small businesses—especially entrepreneurs who are launching new ideas?

The nice thing about entrepreneurs is that they don't simply launch and either fail or succeed. They often launch, fail, try again, and try again. That keeps revenue circulating locally. And when they do succeed, they usually don't stop. They grow, expand, and add new things because entrepreneurship is a way of looking at the world.

These are the types of people you want to attract if you're trying to bring back downtowns and strengthen a community's economic base.

Does the release below resolve the issue of small business success in rural locations? No, but it leans in the direction that small business and rural communities may be overlooked for start-ups and investment.

2026 Small Business: Rural vs. Urban Firms

• Revenue: Rural firms were somewhat more likely to report increased revenue, while urban firms had a slightly higher share reporting decreased revenue.
• Employment: Rural firms were more likely to report increased employment (25% vs. 18% for urban firms), while urban firms were more likely to report no change.
• Profitability: Rural firms showed a higher share operating at a profit (48% vs. 34% urban), while urban firms had a larger share operating at a loss.
• Financial condition: Rural firms were more likely to describe their condition as good or very good, while urban firms had a somewhat larger share reporting fair or poor conditions.
• Major challenges: Both groups faced rising costs, staffing difficulties, weak sales, supply-chain problems, and regulatory pressures.
• Financing: About 60% of both rural and urban firms applied for financing, showing similar overall demand for credit.
• Credit outcomes: Rural firms had a somewhat lower approval rate and higher denial rate than urban firms.
• AI adoption: AI use was emerging in both groups, with firms primarily using it for writing/marketing, productivity, planning, and analysis.

Federal Reserve Banks. (2026). 2026 Firms in Focus: Chartbook on rural and urban firms: Findings from the 2025 Small Business Credit Survey. https://fedsmallbusiness.org. 

Happy Labor Day 2026

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Today is Labor Day. Most workers have the day off because it is a federal holiday. We’re celebrating labor and its contribution to the development of the country.

As society has needed things, labor has been the force that built and created them. Human capital will continue to be an important part of our society, even as technology becomes more integrated into our lives. Of course, labor will change because technology changes, and what needs to be done must change as well.

Having strong, innovative workers and celebrating their achievements throughout history is a way of honoring normal people—common people who show up every day, take care of their families, come to work, put in their time, and build the things we need.

Sometimes, we get the perception that all of this could have happened without some level of labor’s involvement. But as a system, labor is one of the major components of economic health. You can invent things and develop new technologies, but you still need people who can build them, produce them, and scale them.

The History of Labor Day