No. of Recommendations: 2
WHOA!!! What happened to the "wealth effect"? More money in my retirement account is supposed to make me feel wealthy and I am supposed to spend more. Such spending through these tax cuts is supposed to generate more revenues. This is the line that the administration has been peddling.

As Pappy said, smoke and mirrors. Maybe we ought to call it Rumpelstiltskenomics, since it so resembles spinning straw into gold.

(By the way, I haven't actually heard the administration talk about the wealth effect—spending money you don't really have—as their real hope for economic stimulus, but getting explicit about an intent to pump up the stock market, without the usual euphemisms about investment, is getting pretty close.)
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