If the government here is going to tax Americans at Greek rates, then one can expect Greek levels of tax compliance.
If it weren’t for black market dealins, I’d be screwed.
We’re experiencing a ‘cook-the-books’ boom........
Here’s what I think: People haven’t bought much for five years. Our patio umbrellas are finally shot, our cars are held together with coat hanger wire, we haven’t vacationed, we buy the cheap beer — you know, living an austere (but fair!) lifestyle that the morons voted for five years ago.
Over these five years, we’ve slowly paid down our credit cards and feel like we’ve been down long enough. We’re starting to buy stuff again out of necessity. And we have these pretty much clean credit cards sitting there.
Screw it! I’m actually thinking about a little trip to Bermuda after going absolutely nowhere for five years. Mmmmmmmm. Bermuda.
nothing better than supplementing your government support -welfare, unemployment, disability, etc. - with a cash paying job that will not jeopardize your benefits.
I don’t do the black market, but I do avoid commerce whenever possible. I’ll do my own repairs rather than work for income that can be used to hire a professional for the same repair work. I have no desire to contribute to an economy that will support Obama’s agenda. I’ll reenter the economy if we restore freedom and democracy in 2016.
One area where I have changed is that I no longer look down on those who cheat the system. That now strikes me as a rational and legitimate choice, both in terms of taxes and in terms of courts. Telling the truth creatively to get on a jury and nullify bad laws is a civic duty in these times when government is no longer of the people, by the people, or for the people. Similarly, bartering when possible to avoid any records of taxable income may be the best possible option for protecting our country from those in power.
Simple: When you need to buy relatively the same amount of food to feed your family every week, but the price of that food doubles, you spend more.
I used to go grocery shopping at a local morket and spend about $200 each trip.
Since Odumbass took office I rarely get out of there spending less than $300 and have twice crossed $400.
This is with the same general purchasing patterns.
So while my ‘spending’ is up, that is NOT a measure of ‘consumer confidence’
The most pernicious aspect of the cash or underground economy is the resentment it breeds in the people. If you are playing by the rules, but others are not or do not, then the taxes you pay are not equally born by all.
Such a circumstance is not sustainable, it some think they are getting the short end of the deal, then they will find a way to even up the playing field.
This issue is especially pervasive in the small construction business. More regulation/regulators just makes it worse.
Americans are buying freeze dried foods, medical supplies, warm clothes, firearms and ammunition in record numbers.
That doesn’t reflect any “faith” in the American economy or in the current administration; quite the opposite.
It just means everyone wants to be well-stocked before the SHTF.
My observation is that it is not just one thing.
I am buying things now because price will go up and may not be available.
I run into cash deals very often. Underground economy is going to be growing for a variety of reasons.
The attitude of screw the govt, they don’t care about me and I don’t care about them is valid.
Business may be buying to avoid taxes, especially farmers.
I would add one more thing. I might as well spend my money NOW before the govt destroys everything.
A little on the “eat drink and be merry” line of thinking.
By the way there are two versions of that:
1) for tomorrow we die
2) and enjoy what God has given us.
Ed Morrissey still thinks our government is benevolent, and follows all of its own laws.
Consumers are loading up the plastic again. The next wave of bankruptcies will take place later this year.
How much of America’s consumerism is tied to maxed out credit cards living paycheck to paycheck?
Spending money that you don’t have (just like Big Daddy Sam).
I recently paid a plumber $120 to crawl under my house and change out three drains. He works for a plumbing company but came over and did it on his day off. (Got him by word-of-mouth. Theres no way I would have had somebody do this job at the price the plumbing company wanted.) I know a roofer and a carpenter who will do one heck of a job, for cash. I think they are otherwise unemployed. I know a woman who will hook up your air conditioner and get it running. Shell tell you what to buy on the internet and how to get it shipped and help you install it. No warranty, but its 1/3 the cost of having a company do it. These people are pretty busy.
Now, having had a company, Im annoyed. But unemployed people cant afford paying the freight to have any of these jobs done with insured, bonded, licensed workers. As an employer, once you add the mandatory requirements for health insurance, unemployment tax, social security, and other freight, you must charge $100/hour and $250 to send a truck out. So a simple, minor job, done by the book, costs the client $500-1,000. When the client has no income, they simply put off doing these things or they trade for them or they buy them off-book for cash. And, no, this isnt healthy for the economy. In the Soviet Union, everybody had their day job where they pretended to work and the government pretended to pay them; then, they had their real work. Theyd stand on street corners with a toolbox and fix cars, or do plumbing, or make illegal alcohol. Thats what the government is driving us to; an unregulated, off-book economy. And, heres the thing. Once the bulk of the economy has converted to off-book, it wont convert back.
Lack of income reporting
Black market usage (food stamps for cash, etc.)
ObamaLand is a terrible place, and people react.
I’ve been wondering about this for some time. The economic numbers don’t add up to what I see with my own eyes. During the election campaign, a black man called local talk radio. He was defending Obama and the unemployment figures. He said unemployment wasn’t as bad as everyone was saying. He said he personally knew about 50 people who were collecting unemployment compensation and working somewhere for cash under the table. Add in the underground economy of the illegals. That’s the Obama economy.
Wonder how much ‘increased consumer spending’ is fueled by under-the-table cash sales of counterfeit ethanol RINS and bogus “carbon credit” certs?
Wonder how much scrapping out somebody else’s copper church roof or air conditioners “contributes”?
I understand there’s also a cash market for used school buses in Chicagoland, too, that would certainly boost spending, if the cops would just keep their interfering noses out of the business of the scrap business.
A half gallon of ice cream is now 1.5 quarts. Products are shrinking but prices remain the same or are higher. Bugs the heck out of me.