Forget the 1%, Obama and the Communists have ensured the “sacrifice” will be shared…it’s called deflation and it will hit everyone…
Be that as it may, employee contributions are going up — a de facto tax hike. And this will work directly against any upturn in consumer spending when you consider that the state and local government sector employ nearly 20 million people or 15% of the national job pie.
So we will have less government, fewer entitlements and more whisperings that it isn’t just the $250,000+ high-income households that are going to experience tax increases and diminished disposable income growth. This is shared sacrifice
One has to wonder what events could provide positive momentum to GDP growth, push corporate earnings to record highs as the consensus predicts as early as next year, or generate any lasting inflation, for that matter.
It’s the people that make these pricing decisions. Businesses can only price up to what consumers are willing to pay. It is households that determine whether or not we have inflation, not some bureaucrat in Washington who believes he has control over some printing press.
You can only run against the laws of economics for so long… and we’ve reached the end…