Quote:
Originally Posted by saden1
The question is what will people be doing with the tax cut money in the next two years? Will they be buying essential goods (food, school supplies, and cloths) or non-essential goods (cars, big screen TVs, and that nice new shaver)? |
Like I said, poorer people will feel financial pressure to tap into that money for essentials. That will boost earnings, profits, and ultimately stock prices.
Stock prices are the biggest driver of consumer confidence. Once the stock prices start coming back up, a lot more people will feel easier about opening their wallets. And before you know it the nation's velocity of money is at full tilt again.