Friday, December 23, 2011

The head line on the payroll tax should be

"Obama forces Republicans to be Republicans." Now, bets in 6 months that it will turn out that all of the increased demand will be turned into corporate profits. Right now we have profit push inflation, combined with demand deflation. Hence, as Shaula Evans quipped to me "I don't get increased income, I get increased through put." They could have effectively just handed the money to corporations. Now, on how it was paid for...