The middle class will save the money or use it to pay off debt. The lower class will spend it at Walmart. Look where people bought winter clothes this year. The department stores are going broke while Walmart had an increase over last years 4th quarter sales. Not as big an increase as they expected, but an increase never the less.
Try looking at the goods in Walmart for where they are made. This cut will put people to work.. Unfortunately they will be Chinese, Japanese, Vietnamese, and Mexicans.
“Try looking at the goods in Walmart for where they are made. This cut will put people to work.. Unfortunately they will be Chinese, Japanese, Vietnamese, and Mexicans.”
Ha! Good point!
Any consumption-side stimulus will do the same - stimulate more trade deficit consumption, but not USA production per se.
The obama plan is “Keynesianism on crack”.
This is the most important point made so far about the Obama plan - read and understand and you will ‘get it’ as to Obama’s full game plan:
http://travismonitor.blogspot.com/2009/01/obamas-team-sandbags-jobs-numbers.html