5/1/2014
By Charles Payne

Once again we are reminded that you can throw out all the books on economics and settle on the fact that we live in a "trickle up" society where people, especially poor people, can't wait to buy stuff from rich people. I've been writing about this for years, usually the day after Thanksgiving after a bunch of people stuffed to the gills, bum-rush into the nearest mall to the point where people get hurt or even killed to spend their hard-earned money. It's fine that people do what they want with the cash they earn, but they shouldn't demand higher taxes for people smart enough to have some self-discipline.

By the same token, people should understand as Nancy Pelosi has stated on numerous occasions that the government increasing handouts is a ploy, because these same kind-hearted folks expect recipients to spend that cash immediately -they call it a "positive multiplier effect".  There are better multiplier methods out there, including the best of all, creating a backdrop that spurs the creation of a lot of good-paying jobs. On that note, the Fed also wants you to go out and spend, so they must be pleased with the latest data on personal income and spending.

Income increased nicely, but spending soared at the expense of savings and that means consumers will next have to borrow again - all part of the plan.

Charles Payne
Wall Street Strategies

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