Posts Tagged ‘Consumer Spending’
Wednesday, February 24th, 2010
Could somebody please tell the commodity price party to keep the noise down-the U.S. economy is trying to sleep. The Reuters/Jefferies CRB Future Price Index for Commodities came within a heartbeat of establishing another record high this week, led by $116 oil. While it’s tempting, to dismiss the persistent commodity surge as speculative, the inconvenient counter-point to that theory is that many non-exchange traded prices are ramping up even more quickly (e.g..iron, potash). Is it possible that while the bulk of the financial world was busy navel-gazing at the “worst crisis since the depression”, it may have overlooked a potentially bigger and more lasting problem hurtling down the mountain i.e. raging global inflation pressures?
Many have been calling for a softening U.S. economy to undercut strong commodity prices. It’s increasingly looking like those tables have been turned-persistently strong commodities are threatening to further undercut a struggling US economy. That is, the ongoing strength in food and oil prices themselves will act as an added drag on U.S. growth, by sapping consumer spending power. The challenge for the global economy would be if commodity prices kept rising even if the US$ begins to find firm footing.
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Related Websites - Weekend Personal Finance Review Here are some articles that I liked from around the personal finance blogosphere. Binary Dollar gives some basics of Home Equity Line of Credits (HELOCs) and Taxes. I have a HELOC and I didn't know half of these things. Ben...
- What to do Before You Sell Coin Collection Collecting coins is a great way for you to be able to make the most out of a hobby which is about as old as coins themselves. There are a few different stages most people go through when they have...
- Time To Go Long The Dollar - 2 This post is a follow-up from a previous post about Going Long The Dollar. There were some valid arguments for being bullish on the dollar, however, based on yesterday's economic news, they no longer sound very convincing. The jobless claims...
- Median Home Prices and The 'Double Dip' A 20 second scan of the headlines for the real estate tab on this blog will show you I've been bearish on U.S. real estate since this blog began several years ago, but I'm thinking it might be time to...
Tags: Commodities, Commodity Price, Commodity Prices, Consumer Spending, Depression, Drag On, Footing, Future Price, Global Economy, Heartbeat, Inflation Pressures, Jefferies, Navel, Noise Down, Oil Prices, Potash, Price Index, Reuters, Sleep, Spending Power
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Sunday, February 14th, 2010
Rather than merely hiring the unemployed to do work of little value. For example, tax cuts increase consumer spending, which stimulates many industries. Also, the effects of government spending (such as on a public works project) will spread, via the multiplier effect, through the economy, increasing consumer spending, too. Also, by generating a more favorable economic climate, these efforts by the government can result in increased business investment spending. Thus, the effects of budget deficits designed to stimulate employment will be felt all through the economy, from the toy industry to the construction industry – not merely in the hiring of the unemployed by the government.
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- You Can't Spend Your Way Out of the Crisis WSJ had an interesting article on New Zealand Prime Minister, John Key. A former foreign-exchange trader, he takes supply-side approach to the global recession. "We don't tell New Zealanders we can stop the global recession, because we can't," says Prime...
- Sad Worlds Collide: The Unretired vs. the Unemployed The dramatic rise in unemployment (over 500,000 jobs lost last month) may be combining with an equally dramatic drop in the value of retiree investment accounts (40% and counting) to create a perfect storm. More specifically, the recently unemployed may be competing...
- Stop the Calls for Consumer Spending Stimulus Packages Stimulus Talk - The Sequel The politicians are at it again. Apparently forgetting the complete failure of this past summer's "stimulus" program, our fearless leaders are determined to put even more of our tax dollars in the hands of even...
- Can the Deflation Equation Produce Good News for the U.S. Economy? In its December Economic News Release, the Bureau of Labor Statistics seems to confirm that the U.S. economy has clearly entered a deflationary period. To be accurate, the BLS does not actually make judgments like that for public consumption. "Deflation" is Mr. ToughMoneyLove's...
Tags: Auto Finance, Budget Deficits, Business Investment, Construction Industry, Consumer Spending, Economy Government, Edmonton, Favorable Economic Climate, Fiscal Policy, forex, Government Spending, Multiplier Effect, Stabilizing The Economy, Tax Cuts, Toy Industry
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Tuesday, January 12th, 2010
Amid hopes of economic recovery and renewed investor appetite for riskier assets, most of the global indices reversed their first-quarter losses during the second quarter of 2009, returning their best quarterly performance in more 20 years.
The upward movement continued in the third quarter, with equities trending higher. Analyst upgrades across sectors, combined with a spurt in deal activity, supported this uptick. However, the Federal Reserves announcement that it would be slowing the purchases of mortgage debt was sobering, as many worried about the sustainability of the recovery process if the stimulus was withdrawn too early.
In Europe, economically sensitive areas, such as industrials and consumer discretionary, continued to rise, while pharmaceuticals also performed well, buoyed by consolidation in the sector. Economic indicators continued to improve, and the European Central Bank policy makers signaled they intend to leave emergency lending measures in place next year to support an economic recovery.
In Asia-Pacific, industrial production expanded in most of the Asian economies, indicating that their policy measures are gaining traction. The private sector too is recovering well in many countries, with lower interest rates and government incentives driving consumer spending in Asia.
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Tags: Analyst Upgrades, Asia Pacific, Asian Economies, Auto Finance, Consumer Spending, Economic Indicators, Economic Recovery, Federal Reserves, Global Indices, Government Incentives, Industrials, Mortgage Debt, Policy Measures, Quarter Losses, Quarterly Performance, Second Quarter, Sensitive Areas, Spurt, Stimulus, Uptick, Upward Movement
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Saturday, September 5th, 2009
Often, when the economy is sluggish and unemployment is high, much attention is given to government efforts to “create jobs.” Many people believe that this simply means direct government hiring of unemployed people, often for “make-work” programs (“digging holes and filling them up again”).
In fact, “creating jobs” is a much more positive concept than this – it refers to government efforts to stimulate the whole economy (through budget deficits), rather than merely hiring the unemployed to do work of little value. For example, tax cuts increase consumer spending, which stimulates many industries. Also, the effects of government spending (such as on a public works project) will spread, via the multiplier effect, through the economy, increasing consumer spending, too. Also, by generating a more favorable economic climate, these efforts by the government can result in increased business investment spending. Thus, the effects of budget deficits designed to stimulate employment will be felt all through the economy, from the toy industry to the construction industry – not merely in the hiring of the unemployed by the government.
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Winnipeg Wpg Auto Finance Car Dealers
Vancouver GM Car Dealers
Vancouver Lower mainland B.C. Auto Financing
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Related Websites - Tips To Survive The Credit Crunch Today's article is written by guest blogger Trisha Wagner. Does the economy have you feeling down? It takes a boat load of positive attitude to look at the current credit crunch and not feel a bit of apprehension regarding your...
- Cash For Clunkers Results Are In I previously went over cash for clunkers when it first came out. The point of that post was to detail how the program was supposed to work. Since then I have refrained from discussing the program until the results were...
- Government Bail-Out Of The Auto Industry - Part 2 About 4 months ago, I protest against the government bail-out of the auto industry. I said they were inefficient operations that were being driven out of business by the Auto Workers Union and they'd be back asking for more money...
- Mailbag: 5 Steps To Get Out Of Debt I received this email from "Alan," a 24 year old who was just hired after being unemployed for 8 months after graduating college. I am in $15,000 of credit card debt and got a job that pays $60,000/year. I was living with...
Tags: Antihistamine, Auto Finance, Auto Financing, Budget Deficits, Business Investment, Construction Industry, Consumer Spending, Digging Holes, Economy, Favorable Economic Climate, Finance Car, Gm Car, Government Efforts, Government Spending, Jobs, Many People, Multiplier Effect, Online Pharmacy, Tax Cuts, Toy Industry, Unemployed People, Unemployment, Vancouver Lower Mainland, Winnipeg, Wpg
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Monday, August 31st, 2009
As we have seen, fiscal policy is used to stabilize the economy in recessions by increasing the level of spending on goods and services by government, consumers or businesses. The effect of any such increase in spending will, however, spread through the economy due to the multiplier effect, as increases in income generated by the policy are respent again and again. For example, a government road-building program will increase the incomes of construction workers, who will spend part of their increased incomes on consumer goods and services, starting a chain of respending that will increase total incomes and GNP by about 1.6 times the original increase in government spending.
Similarly, personal income tax cuts that boost consumer spending will initiate a respending effect that will ripple through the economy.
Russian Online Pharmacy Alzheimer’s Antihistamine Medication
Winnipeg Wpg Auto Finance Car Dealers
Vancouver Lower mainland B.C. Auto Financing
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Related Websites - Debt and the Credit Crisis The last recession that our country experienced was, in truth, a mild one. The stock market and many corporate profits began to tank, but consumer spending seemed to dance merrily on through the recession without as much as a scratch....
- Inflation and Consumer Debt: Truth and Myth Personal finance writers frequently comment on how inflation will affect the average consumer. This topic has received a lot of attention in recent months (including here on Tough Money Love) as our government pours money into the economy. Our central...
- Bank of Canada lowers economic outlook By Guy W. Close - The Bank of Canada now says it was wrong about how strongly the Canadian economy has been recovering and has changed its tune on raising interest rates, which will likely...
- Is There a Cure for the Economy? The Spending and Saving Catch-22 If you read personal finance blogs or magazines you'll find a lot of advice to save money, get out of debt, and build an emergency fund. This is all solid advice and things that I fully endorse on Lazy Man...
Tags: Antihistamine, Auto Finance, Auto Financing, Construction Workers, Consumer Goods, Consumer Spending, Consumers, Economy, Finance Car, Fiscal Policy, Gnp, Government Road, Government Spending, Income Tax Cuts, Incomes, Marketing Strategies, Multiplier Effect, Online Pharmacy, Personal Income Tax, Recessions, Ripple, Target Marketing, Vancouver Lower Mainland, Wpg
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Monday, August 24th, 2009
While traditional theory would insist that taxes be increased in order to balance the increases in government spending referred to above, Keynesian theory argues that tax increases would only depress spending by consumers and businesses, worsening the recession.
Thus, taxes should not be increased during a recession; indeed, if anything, they should be reduced, so as to help raise the level of aggregate demand. The most popular policy of this type is the personal income tax cut, intended to increase personal disposable income and consumer spending, although temporary sales tax cuts have also been used for this purpose. To promote higher levels of business investment spending, various types of tax reductions may be used, including cuts in corporate income (profits) taxes and increased capital cost allowances, which permit businesses to depreciate assets more quickly, thus reducing their taxable income an
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Related Websites - What Do I Need to Bring to My CPA or Accountant Despite helping people in my life with their taxes I use an Accountant. There are a couple reasons why I use one: The Wife is Self Employed complicating our situation a bit I have self employment income which is growing...
- Self Employment Tax For those who are self employed, the self employment tax and the burden it imparts is a major stressor that can make things tense for those with their own businesses. All it takes is a small bit of time and...
- Small Break for HomeOwners One small break that slipped into the tax code for 2008 and 2009 is the ability to take a deduction for property tax even if you do not itemize. Specifically, if you file Married Joint return, you may deduct up...
- Escaping High Taxes No long ago I wrote about how the states receiving the most stimulus money were not changing their tax and spend ways and were generally not doing their citizens any favors with the new federal money. I compared a few...
Tags: Aggregate Demand, Assets, Auto Trader, Business Investment, Businesse, Consumer Spending, Consumers, Corporate Taxes, Government Spending, Honda Civic, Income Taxes, Keynesian Theory, Kijii, Lower Mainland, Personal Disposable Income, Personal Income Tax, Profits, Purchase Car, Recession, Sales Tax, Tax Cuts, Tax Increases, Tax Reductions, Taxable Income, Taxes, Temporary Sales, Traditional Theory, Winnipeg
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