So Goes Wal-Mart, So Goes The Economy?
This can't be a good sign at all. Wal-Mart has come out with some disappointing returns on sales and there is word that privately, officials with the company are worried. Other retailers are noticing similar things as Target, Dollar General and others are noticing a downward trend in their sales.
For many, this can be traced back to the beginning of the year, when the fiscal cliff deal was cut. We were told that our taxes were not going to go up and most of us noticed that our taxes went up. According to Business Insider, the increase in taxes means $60 a month for those that are making around $40,000 a year. That is no small increase for the average person and, as you can imagine, people are now cutting down on their spending.
President Obama said himself that you should not raise taxes in a down economy, but he has done exactly that, and not just on the wealthy, but on all of us. I'm sure that the excuse is that the recession is over, but let's not forget that the economy contracted in the last quarter. If that continues, we are in for a rough ride and things are not going to be good for anyone.
In addition to all of that, gas prices are up and more people are making less and making do with less. Unless you happen to be Barack Obama, you know that this is not the recipe for a robust recovery.
So what will the President's response be to an economy heading south? Mark my words, the man will decide that more taxes on the wealthy are what is needed to take care of things. If that is what he thinks should happen, we are in for a very rough ride indeed.