So along comes an AP article that blows the lid off liberal economics. AP reports that economists are concerned that "the affluent" are cutting back on spending -- which will hurt the economy -- and, "deliver more pain to lower-income workers, who are dependent on their business and fat tips."
AP's economists say -- surprise! -- that when the wealthy cut spending, there's a "ripple effect across all consumer spending." Households making over $150,000 account for almost 40 percent of all spending and two-thirds of all economic activity. Our economy depends on the affluent to "spend with enthusiasm," because the top 20 percent of earners spend almost five times as much as the bottom 20 percent. When they stop spending, everybody suffers.
By gosh, folks! It's a total vindication of supply-side economics! And Ronaldus Magnus! These affluent Americans are the very people Democrats hate -- and say don't deserve tax cuts -- who aren't even included in this so-called stimulus package. The same people who pay for every big government program the Democrats propose.
Conservatives know this. Liberals know it, too, but they can't dare admit it, which is why electing real conservatives matters. I hope that this AP reporter still has a job tomorrow!
Read the Background Material on the Morning Update...
• AP: Luxury Shoppers' Cuts Could Harm Economy