At 14:25 10/09/99 -0400, you wrote:
>One other observation (just "thinking aloud"): Yes, it seems
>very plausible that the stock market has a lot to do with
>buoyant personal consumption in the US -- but could the new
>state of the federal budget also be a significant factor? I
>think one could make a case that government saving has displaced
Surely that is the wrong way round. A budget surplus indicates that
the government is taxing the personal sector more than it has
to taking into account its expenditure. By itself that would tend
to undermine personal expenditure.
I high level of state revenues are a consequence of the growth
of consumption and investment not its cause.
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