why consumers are bummed out robert reich

[xchrom]

http://www.nationofchange.org/why-consumers-are-bummed-out-1359556866


The Conference Board reported Tuesday that the preliminary January figure for consumer confidence in the U.S. fell to its lowest level in more than a year.

The last time consumers were this bummed out was October 2011, when there was widespread talk of a double-dip recession.

But this time business news is buoyant. The stock market is bullish. The housing market seems to have rebounded a bit.

So why are consumers so glum?

[MrSlayer]

1. Because we have no disposable income anymore.

Many of us have no sort of income.

There's a big party going on if you're a Ritchie Rich thief, the rest of us are taking it up the ass.

[Puzzledtraveller]

8. You said it.

[Sherman A1]

2. Sums it up pretty well

in my opinion, but I have never found Robert Reich to be incorrect in his views.

[MrYikes]

3. You're right, when he talks, I listen. nt

[reformist2]

4. The richies can't see it, but deflation is coming.

[ananda]

5. Agree.. and

the next big bubble to burst is that of the student loan industry which is going to be a huge fubar disaster.

[Nay]

7. Yep. Schools are going to go out of business in droves. nt

[JVS]

6. When the lower class takes wage cuts the upper class has more money for stocks and real estate

[hfojvt]

9. because the accursed payroll tax cut went away?

"And the payroll tax hike has reduced paychecks for the typical American by about $100 a month."

So the typical American makes $60,000 a year? Or is it $80,000 a year?

But the average income for the bottom 20% is $13,900 and the average income for the next 20% is $28,100. So 40% of us are making a lot less than $60,000

To say nothing of $80,000. And I mention $80,000 because my paycheck has only been reduced by $15 or $390 a year. This, in spite of the fact that I make almost 75% more than $19,500 a year. Because my take home pay is smaller without the accursed payroll tax cut, my federal and state tax withholdings are also smaller.

Of course, that is not extra income. It just means that my tax refund will also be smaller next year. But it is money now, instead of money next March. But it does mean that in order to reduce a paycheck by $100 a month a person would need to make a fair amount more than $60,000 a year. And many Americans do not make nearly that much money - especially for a paycheck. For household income - two paychecks maybe 40% of Americans do, but that would be the typical American FAMILY and NOT the "typical American".

I also note that Reich says the following about Obama's supposed tax increases on the rich.

"the “fiscal cliff” agreement has locked in low taxes for most of the upper-middle class and wealthy,"

Yep. Let me just say that again in BOLD

"the “fiscal cliff” agreement has locked in low taxes for most of the upper-middle class and wealthy,"


While I always rail against the accursed payroll tax cut because it favors the rich, it did not favor the rich nearly as much as the disgusting fiscal cliff betrayal did.

46% of the accursed payroll tax cut went to the top 20%
65% of the disgusting fiscal cliff betrayal goes to the top 20%

the beat goes on