"What a great site! I'm impressed by the great stuff you've pulled together. It merely confirms my long-held belief that economics CAN be interesting....
All the best"-
Charlie Wheelan,
aka The Naked Economist
Surprisingly, consumption is increasing, when were all supposed to be depressed because the economy is failing. But not everyone is being hurt because of the economics down-turn, or maybe most just don't notice. For those who don't own stocks, maybe this isn't as grave. Perceived wealth isnt changing that much for those of us with no stake in wall-street. Kids sure don't seem to care. We still spend money like it grows on trees. And aren't we one of the biggest consumption groups in the country? Also, don't sales always increase near the holidays? Let's see what happens from Dec to Jan before we assume anything.
If the Fed is going to cut taxes people will spend more of their money but when will taxes be increased? when more houses old sold? then when the taxes increase people are going to save their money. The decision must be a smart one because if it isnt there could be a recession.
2 comments:
Surprisingly, consumption is increasing, when were all supposed to be depressed because the economy is failing. But not everyone is being hurt because of the economics down-turn, or maybe most just don't notice. For those who don't own stocks, maybe this isn't as grave. Perceived wealth isnt changing that much for those of us with no stake in wall-street. Kids sure don't seem to care. We still spend money like it grows on trees. And aren't we one of the biggest consumption groups in the country? Also, don't sales always increase near the holidays? Let's see what happens from Dec to Jan before we assume anything.
If the Fed is going to cut taxes people will spend more of their money but when will taxes be increased? when more houses old sold? then when the taxes increase people are going to save their money. The decision must be a smart one because if it isnt there could be a recession.
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