Have a look at Wal-Mart following the Obama tax increases on January 1.
Wal-Mart shares are tanking after the company’s executives called February sales a “total disaster.”
Wal-Mart is facing a scary reality: the ailing finances of its core customers, Brian Sozzi, chief equities analyst at NBG Productions, told us.
“Wal-Mart shoppers are the barometer of the U.S. consumer, and these emails reflect common sense about customers,” Sozzi told us. “The consumer isn’t mentally or physically ready to spend on discretionary inventory and there’s no reason to be optimistic.”
It is all very predictable. Raise taxes and people buy less stuff. The velocity of money slows. There are fewer sales taxes collected in stores. Employees get laid off and stop paying income taxes. Laid off employees start collecting government checks. Tax revenues fall. Deficits increase.
But hey, by all means Obama. Just keep on raising taxes.