Have you started saving in case of emergency?

If getting the people to spend again is going to fix the economy then we are in some serious trouble! Everyone I know is cutting back and starting save in case of emergency.

That is what I am seeing and reading. I am a cheapskate due to a limited income. I go to Goodwill. I have seen lines 20 long just for the fitting rooms and all registers with 1/2 hour waits or longer many times.

Dollar Stores are seeing increased traffic as is Costco and other discount stores. While many say that is spending, they don’t see the reduction in spending that means. For every less dollar those people are paying, there is 8% less sales tax in a state with that level of sales tax. Then, the layoffs and closures in the other stores also impacts tax revenues.

Yet, while all of this is expected in a nation that has “business cycles,” don’t you find it interesting that our governments don’t figure that into their budgets and have a resource for bad times?

Oh, some states don’t charge sales tax on used items like those a Goodwill, so that saves people even more but, also that change in where people spend, also spells trouble for the state sales tax revenues.

Related Posts:

• Cities and states can’t keep up with spending.
• Where do you look for what is really going on with sales? Denninger lays it out in simple terms.
• Leave it to the WSJ to report the truth - and then try to paper over it:
• The beauty of this recovery is that it is already leaving 70% of the US behind!
• It takes years of deleveraging before jobs can come back.

Leave a comment