LOS ANGELES—Consumers aren't picking up the economic slackafter—what economist Todd Buchholz, formerWhite House senior economic advisor—calls thecomplete collapse of the energy and commodities industries.Buchholz spoke at the opening of ALIS yesterday inDowntown Los Angeles, saying that the economy is growing slowly andhas not yet found a replacement economic driver.

"When the baton drops in a relay race, it makes a terriblesound. There is a relay race in the world economy, and the baton isbeing jostled," he said, explaining that when the energy industry,which formerly drove the economy, collapsed, experts believed thatconsumers would pick up the slack with their gas savings. However,that didn't happen because consumers have a long-term economicview, and need an adjustment period to recognize an increase inincome. In 2015, economists predicted massive economic growth. Nowat the end of the year, GDP growth has come in at or below 1%.

When consumers are spending money, they are buying durablegoods, like cars, cell phones and housing. As consumers begin torealize that the have more money to spend, however, they willtakeover the baton from energy—but Buchholz said that we shouldonly expect them to trot with it not run.