Zeev,
You are more positive on the effect of tax cuts than I am. The tax cuts IMO will not be sufficient to solve any problems. There has been inflation, or increases in costs for our consumers. <g> The cable bill is higher, communication costs are higher, the electricity bill is higher, the heating bill is higher, the cost of gasoline for auto is higher, food is higher, these credit cards need to be serviced, and the mortgage must be paid. I do not know what has happened where you live but here in Minneapolis, a conservative part of the country, people have built homes with 3 times the square footage of my generation and their mortgage payments were on the edge of their budgets when they built or bought. They are now in trouble, and hopefully they will be able to get lower mortgages and they will need tax cuts to break even and run in place. By run in place I am talking about budgets that only cover essentials.
I am not saying my view of the world is correct, but I "know" a city of young people that thought money was free and are now in trouble. I do not think my generation will bail out this economy, since we have learned to buy when things are being given away. <g>
Joan |
