The experts are surprised again that spending is down or at least isn't up. Why are they surprised? My spending only went up because the prices of commodities I buy went up and my spending will really intensify when I manage to get a bank to accept an offer on a home (I have four offers pending currently).
The real problem is, and the reason for yesterday's decision by the FED to not raise rates, that people's incomes have dropped with the economy. Many people who were just about to lose their homes before the FED dropped rates to their current historic lows have, like myself, taken paycuts. These paycuts reduced the size of the buffer between costs and wages. If the FED raises rates, these people will once again be borderline default on their mortgages which will just repeat the exacerbated crisis.
What they should have done all along is to CUT TAXES. Tax cuts put money back into the pockets of the people. Instead, the illustrious state of Nevada raised our sales tax locally from 7.75% to 8.1%, raised my PERS (Nevada's version of Social Security) from 10.5% to 11.25%, and I took a 6% paycut. This amounts to a 10% reduction in discretionary income compared to a year ago with no COLA or merit pay increases for the next bienium.
Then they're surprised I don't run out and buy a plasma TV or splurge on iPODs, shoes, entertainment, etc. Who are these experts? I took business classes in college, and I knew better than they do apparently. I may not be the paragon of information or the wellspring of wisdom, but I am not surprised that in an economic downturn people tighten their wallets. If the administration is not careful, they will not only prolongue the recession but vouchsafe continuity of a depressed economic state that hurts everyone except our enemies.
While we're on that topic, I hear Wall Street is raking in the profits. I thought they were our enemies. How come they are the only ones who seem to benefit from Obama's policies?
The real problem is, and the reason for yesterday's decision by the FED to not raise rates, that people's incomes have dropped with the economy. Many people who were just about to lose their homes before the FED dropped rates to their current historic lows have, like myself, taken paycuts. These paycuts reduced the size of the buffer between costs and wages. If the FED raises rates, these people will once again be borderline default on their mortgages which will just repeat the exacerbated crisis.
What they should have done all along is to CUT TAXES. Tax cuts put money back into the pockets of the people. Instead, the illustrious state of Nevada raised our sales tax locally from 7.75% to 8.1%, raised my PERS (Nevada's version of Social Security) from 10.5% to 11.25%, and I took a 6% paycut. This amounts to a 10% reduction in discretionary income compared to a year ago with no COLA or merit pay increases for the next bienium.
Then they're surprised I don't run out and buy a plasma TV or splurge on iPODs, shoes, entertainment, etc. Who are these experts? I took business classes in college, and I knew better than they do apparently. I may not be the paragon of information or the wellspring of wisdom, but I am not surprised that in an economic downturn people tighten their wallets. If the administration is not careful, they will not only prolongue the recession but vouchsafe continuity of a depressed economic state that hurts everyone except our enemies.
While we're on that topic, I hear Wall Street is raking in the profits. I thought they were our enemies. How come they are the only ones who seem to benefit from Obama's policies?
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