1 of 3

No

Write now Article Tools

Page 3 of 3

buying, selling, investing, and prospering in the world." Two things to consider about this quote: (1) America is not producing, selling, and prospering in the world so much as buying and investing, and (2) The Great Depression followed mere months after Coolidge left office.

CONSUMERS ARE THE KEY

As long as consumers continue buying foreign goods, it will be foreign workers manufacturing those goods stores will stock to meet consumer demand. Ultimately, it is in promoting local markets that will change this dynamic. Since that will cost consumers more, most are likely to continue the trend of supporting foreign manufacturing while complaining about their jobs being shipped overseas.

Tariffs are not the answer because these taxes merely increase the cost of foreign goods. It is an artificial expense. If consumers are to make the difference, they will need to make decisions based on whose employment they are protecting for reasons other than increased costs across the board. The other problem with imposing tariffs is tariffs will be imposed on our exports.

Consumer awareness, however, is mostly devoted to getting the lowest price on something we think we cannot live without but could. It is highly unlikely consumers will leave the comfort of paying the least price instead of paying their neighbor. Unfortunately for the neighbor, the people making money through buying and investing will not need his services either.

THE ULTIMATE COST: RETIREMENT

Whether the loss of retirement plans is the result of rising interest rates and declining portfolio values, or portfolios increasing at less than the inflation rate, the table is set for the consumers to lose value in retirement plans either way. Oh well, living like a millionaire because you had a million dollars sounded too good to be true anyway, and you know what they say about things that sound too good to be true!

Learn more about this author, Tom Koecke.
Click here to send this author comments or questions.

• << previous page
• 1
• 2
• 3

Add your voice

Know something about Are the Fed's recent interest rate cuts good for consumers??
We want to hear your view. Write now!