Posted on 07/02/2012 11:23:14 AM PDT by whitedog57
The Institute for Supply Management’s (ISM) factory index (PMI) fell to 49.7 in June from 53.5 a month earlier. This is the the lowest point since July 2009. The ISM manufacturing index is a measure of the health of the U.S. economy and reads above 50 are desirable.
Historically, the economy begins to choke when PMI falls below 50.
The Eurozone reported declining PMI this morning and here is a comparison of US PMI and Eurozone PMI. Notice a similar pattern (but with Eurozone degrading faster)?
The reaction of the US and French governments to this declining economic conditions? RAISE TAXES!!
The Obama Administration wants the Bush tax cuts to phase out AND there are (at least) 20 new Obamacare taxes. This will be the single largest tax increase in U.S. history.
Apparently, the Obama and Hollande Administrations don’t believe the Laffer Curve.
If we think about the demand for housing going forward and you add in the effects of the single biggest tax increase history, housing demand is likely to fall. Since households have budget constraints, any severe increase in taxes leads to income available for housing (and other expenditures) to decline. Will consumers choose housing and cut back on food, autos, etc? Only time will tell.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
Hawley and Smoot would be proud of them...
Speaking of them, there are a lot of FReepers who insist that raising taxes on Americans and calling them tariffs would be good for the economy, too.
Close.
Cloward and Piven would be quite proud, indeed.
I’m one of those... :D
Yes. You're incorrigible. Sigh.
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