"Neither. The consumer has 30% more spending money in his pocket.
Let me see ... more money to spend ... demand increases ... supply remains constant ... prices therefore .... DROP????
In your dreams."
Robert Paulsen Post #254
"The point is that you would now be able to really control how much tax you pay by how much discressionary spending you cut out.
And a major part of our economy is discresionary spending."
Let's see now, Mr. Paulsen is worried about demand being so great that (pre-tax) prices won't decline in spite of major cost savings on the part of businesses. Now RobRoy is concerned that demand will be so weak that it will trigger a major economic downturn.
Is it possible that the economists who have studied the FairTax are correct in their view that demand will be somewhere between these two extremes and that the economy will do extremely well?
You honestly take these economists predictions seriously? How long have you been following the accuracy of their statements?