Posted by WARREN MOSLER on 3rd January 2013
So the main thing that happened was my payroll tax holiday expired (I read that this was the only bipartisan bill passed into law in the last 4 years), which will reduce the average family’s take home pay (both working) by over $200/month.
That’s a lot, and its highly regressive. And about as high multiple as you can get, with a lot of that income is leveraged into car payments
and mtgs. and other debt service.
It all brings us back to very modest GDP growth, maybe a bit of (population adjusted) employment growth, and a bit of top line revenue growth for corporations.
Ok for stocks, not so ok for people trying to work for a living.
And more deficit reduction to come.