rutt-rooo raggy....
I figured it would take a couple of months for the effects of the expiration of the "payroll tax holiday" to take effect. Today, I read an article that would seem to indicate it's happening faster than I thought.
For background, at the time the disaster hit the economy about four years ago, we were paying a 6.2% tax for social security wages. Most of us don't make enough to worry about the fact there's a cap on social security wages (around $110,000 if I remember right). The reason we had a 2% "holiday" if you will, was that roughly 2/3 of our economy is based on consumer spending. Not manufacturing, but buying and selling goods and services to each other. 66% of what drives our economy is consumer spending.
The story today was about some leaked e-mails between wal-mart executives about their February sales and their words paint a dark picture of what's probably happening to pretty much everyone. If Wal-mart is using words like "disastrous" to describe their sales, um, Houston, we have a problem.
I don't particularly care to shop at Wal-mart, but economics often force me to. They're the cheapest place in town to buy oil for your car. I don't care for their meat or their produce so I shop for food elsewhere, but if I need something, it's usually found at Wal-mart on the cheap.
And they're frightened.
Great.
Look, guys, if Wal-mart is in trouble, um.. uh...
For background, at the time the disaster hit the economy about four years ago, we were paying a 6.2% tax for social security wages. Most of us don't make enough to worry about the fact there's a cap on social security wages (around $110,000 if I remember right). The reason we had a 2% "holiday" if you will, was that roughly 2/3 of our economy is based on consumer spending. Not manufacturing, but buying and selling goods and services to each other. 66% of what drives our economy is consumer spending.
The story today was about some leaked e-mails between wal-mart executives about their February sales and their words paint a dark picture of what's probably happening to pretty much everyone. If Wal-mart is using words like "disastrous" to describe their sales, um, Houston, we have a problem.
I don't particularly care to shop at Wal-mart, but economics often force me to. They're the cheapest place in town to buy oil for your car. I don't care for their meat or their produce so I shop for food elsewhere, but if I need something, it's usually found at Wal-mart on the cheap.
And they're frightened.
Great.
Look, guys, if Wal-mart is in trouble, um.. uh...
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