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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Archive for January 3rd, 2013

post cliff notes

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.

Posted in Employment, Government Spending | 31 Comments »