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I feel as though I have been vindicated for one of my posts two weeks ago. I opined that this so-called economic "recovery" was more smoke and mirrors and that the tax cuts were not the big reason for the seeming turnaround. I just saw a short on MSNBC that indicated that more and more people are living pay-day-to-pay day and the reason for it is that they are broke shortly after being paid.
Now, all of this talk about people spending more is absolutely correct BUT most middle-incomers and above are spending and have spent their home mortagage refinances or loans. That money accounted far more for the spending than the Bush tax cuts. The rest of us who were too poor to own a home just incurred credit card debt to keep up with the rest of our family that was doing finanacially better than we were. That debt will be home for Christmas and after. My millionaire cousin let me know in no uncertain terms that the tax cut meant nothing to his household but the huge amount of money he garnered by refinancing his home enable him to pay off all debts...yacht, two cars, mobile home, and redecorations. The actual tax cut was laughable to him. Now that most of us good patriotic Americans have refinanced and spent the economy into a recovery what will we do in the next two quarters...after Christmas when we have bought all we will ever want or need and the mounting debt keeps us scared shitless that one of the two-income earners in the household will lose his or her job?
Well, don't worry, Bush will start a new conflict to keep your hearts and minds off of what is really happening to you on the home front...including that bogus Medicare reform. Two years from now, the country will begin to really feel the harm those tax cuts have done to the boomers and their children...and the Republicans will still be blaming Clinton somehow.
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