www.bloggingstocks.com/2008/11/07/retail-sales-plunge-puts-a-new-twist-on-trickle-down-economics/print
posted, Tuesday's voting results repudiate the idea that government of the rich for the rich will benefit everyone. Thursday's retail sales reports indicate that this concept fails just as badly when the economy is doing "well" as when it collapses.
What is happening is that trickle down economics, which never worked when the government reported economic growth -- thanks to declining median incomes and rising costs --, is now failing even more catastrophically during the collapse. Simply put, the rich are getting poorer and the middle class are barely able to keep a roof over their heads.
WMT) whose sales are rising as more and more as people who aspired to shop at Neiman Marcus take advantage of Wal-Mart's low prices. How disappointed Wal-Mart must be with the election result;
And despite that misguided effort, Wal-Mart is now benefiting handily from the economic collapse. But this year retailers are starting their holiday advertisements especially early as they try to draw consumers into the stores to get rid of their massive quantities of excess inventory. The stores are so desperate that it may be worth trying to negotiate lower prices at the register. This is deflation in action -- and if you have the money, you will be able to take advantage of it. When economic disaster strikes, it hurts the rich, the middle income and the poor. But if you have cash, you can take advantage of the lower prices. That's a twist on trickle down economics that the outgoing political party never anticipated.
If the retail stores and grocery stores priced their items appropiately in the first place there wouldn't be such a downturn from people buying products. Grocery store-buy one box of 12oz cheerios for 499 get a box for free. That's the grocery stores way of gradually increasing their regular prices. If we as a buying public would for the next year or two buy just the essentials, whether we could afford these items or not, the stores would bring their prices to a realistic level. Come on America You voted for change lets really get and stick together and quit buying so freely.
Greed is the real trickle down problem, not the trickle down policies of former adminstrations. Why don't you focus on the Greed on wall street or are you part of the problem?
Cash is king and if you have it, you're in the driver's seat during the course of this economic melt-down. Even if you have it doesn't necessarily mean you are going to spend it either. That's the whole crux of the matter: when does our consumer oriented economy get back on track again? Our return to Keynesian economic policies from the government may temporarily do the trick, but I foresee interests rates heading for double digits again if government spending increases to support the economy. Otherwise, staflation takes over when growth shrinks in spite of lower interest rates and prices.
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