Posts Tagged ‘spending’’
The Commerce Department reported consumer spending rose to a seasonally adjusted 0.7% in December, indicating that the economy entered into Q1 with momentum….
Question by Average Dude: What would happen to consumer spending if the rich had their taxes doubled?
Answer by Capitalism Prevails
They would move overseas taking their tax revenue and consumer spending with them.
Give your answer to this question below!
Dec. 17 (Bloomberg) — Wayne Wilbanks, chief investment officer at Wilbanks Smith & Thomas, and George Cocalis managing partner at AFB LLC Commodity Trading …
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Definitely check out this Wisely App! It allows for you to find the best places around to eat and shop depending on where people go and return to. Let me kno…
Local consumers are spending the most time watching MediaCorp TV. This is according to the “Media Consumer Experience Study” for 2013, commissioned by the Me…
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Question by Bruce: What is Tourism Spending?
I’m in a Macroeconomics class right now and I was wondering if Tourist spending would be considered part of consumer spending (C) or imports (M)?
I’ve just started the class and I have to write a paper about some change in the macroeconomy. We’ve just learned y=c+i+g+(x-m) and I read in the wsj that tourist spending nationwide has gone up significantly, I’m just trying to figure out if i need to look at it as consumer spending or import spending, since the money is from a foreign place.
So, Anjaree, tourism wouldn’t be a good macroeconomic topic since it all balances out with incoming/outgoing tourism?
Answer by Dye dirt Kong
I think you probably get more than you need to know about spending in relation to macroeconomics.
I think it is based on the multiplier effect. It is said that by spending one dollar, the multiplier effect may make the circulating of one dollar equivalent to at least three or more dollars in the consumer spending.
Know better? Leave your own answer in the comments!
Question by Pete S: Will private market gains from cutting federal spending grow faster than losses from the cuts?
So cutting federal spending in effect lays off federal employees and private market employees who work on corporate contacts that are federally funded. Which means they stop having a paycheck to spend while they look for new work. But if that allows us to cut taxes, then everybody who still has a job keeps more of their paychecks and increase their consumption, creating more jobs. If the damage from the newly unemployed grows faster than the benefits of lower taxes, we lose. Elsewise it is a wining situation. Which way do you think the seesaw tilts, towards gain or loss?
Answer by The Contentious Otter
In economics increased consumer spending as the result of a tax cut or some other windfall is referred to as “The Wealth Effect”. Economist Cam Hui did a study on the wealth effect and found that for the wealthiest 1% of Americans, the amount equaled roughly 5%, which means for every $ 100 the wealthy do not spend in taxes, they spend an extra $ 5 on consumer goods. The real problem comes from the fact that the other $ 95 usually ends up in commodities markets, driving up gasoline and other commodity prices, leading to consumer retrenchment and a recessionary spiral.
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capitalist societies rely on consumers spending money to make the economy work. So Obama raises the income tax?
Question by 4 Gram Blunts: capitalist societies rely on consumers spending money to make the economy work. So Obama raises the income tax?
and now we all have less money to spend. wtf? I made a modest 600$ a week and now i make around 430$ . that 170$ was used to put gas in my car,groceriess, water bill and other misc. bills. How about this idea, government. Stop spending money you dont have fighting pointless wars and then putting the burden of your stupid decisions on the citizens. This country is going to sh*t.
Answer by Carl
In case you don’t understand how things work; the largest consumer is the government. Without the government spending the economy would collapse.
What do you think? Answer below!
Dec. 2 (Bloomberg) — David Page, a senior economist at Lloyds Banking Group, discusses the outlook for the European and U.K. economies and bank liquidity. P…
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June 27 (Bloomberg) — Consumer spending unexpectedly stagnated in May as employment prospects dimmed and rising inflation caused Americans to cut back. Purc…