Wednesday, December 24, 2014

Gas holiday for the American consumer

Have you read about the recent boost in U.S. consumer spending?  If you have, you know it is attributed -- in part -- to a steep drop in energy prices, particularly a drop in gasoline prices.   

Office.com clip art
This development is described by some in the financial press as a tax cut because the benefit accrues to the consumer in much the same way a tax cut does.  

That is, by paying less at the pump, we automatically keep more of what we earn.  Keynesians routinely advocate for enormous government spending to stimulate demand, but putting money directly in the hands of taxpayers, also spurs consumption.  

Read Fragrant Souls, a serialized novel on Substack

 https://maddente.substack.com/p/fragrant-souls-the-full-serial-index