cleveland124 on 07 January 2008
| Final-Fan said: Hey, I never even thought of THIS objection! "And then there's the fact that quite a lot of our consumer products—the TVs mentioned previously, for example—are made outside of this country. A reduction in payroll taxes on US companies isn't going to do much to bring down the price of a Japanese-made TV. But the price of that TV will still go up by 23%." http://qando.net/details.aspx?Entry=2443 What about that? [edit: Actually, now that I think about it, if the "wages and prices both rise" option was taken -- and I think it's the most likely outcome -- then this would not become a problem.] |
So we are going to have 23% inflation overnight now? I would say this would reverse the initial premise that saving would be higher and thus interest rates lower. Inflationary economies have the highest interest rates. It would just back to my other point. Are people buying new now that they have all this money or are they buying used?
