More “Unexpected” Bad Economic News
At least it’s not from Washington for once
The VAT increase and unprecedented blizzards last month contributed to a sudden and unexpected collapse in retail sales, according to the British Retail Consortium. Its sales monitor registered a 0.7pc drop in like-for-like sales last month, compared with a year before – the steepest January fall since the survey began in 1995, and in stark contrast to economists’ expectations of an increase of 0.5pc.
I mean, who could have possibly foreseen a retail sales decline, sorry, collapse, after the Government raised the VAT?
Howard Archer, economist at IHS Global Insight, said: “Households face still very challenging conditions, including high unemployment, still markedly falling full-time employment, low earnings growth, high debt levels, and January’s VAT hike. Meanwhile, still serious concerns about the economic outlook and jobs are likely to maintain consumers’ desire to improve their personal finances.”
Yep, that all applies here.
And I’m sure our Government will decide the answer is for them to spend more.
Biz, Politics | Mr. Bingley | 
February 9, 2010 7:10 am
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How soon before they start mandating a certain level of monthly spending?
We regularly have the muckety-mucks in my town whining in the newspaper about how “tax revenues” are down. Well, duh, our sales tax is approaching 10 percent and it’s less in other, nearby communities. What do you think would happen?
Dig that bomb shelter, folks. There’s a VAT bill in the House right now.
Oh, dear lord. I knew it would be coming.
While I wouldn’t object to a VAT IN PLACE OF income taxes, you know that’s not how it’s gonna go down.