Friday, January 16, 2004

Yahoo! News - Consumer Sentiment Highest Since Nov 2000

I think I understand it now. Evidence shows that the tax cuts passed by Congress and signed into law by President Bush have been good for the economy and job seekers.

As consumer sentiment gets better, the demand for goods and services grows. The higher demand for goods and services means that companies work to provide for those demands. This means investing money into hiring new workers, for one thing.

From the article (emphasis added):

The confidence data helped ease worries that the labor market's slow recovery might undermine consumer spending, which makes up two-thirds of economic activity in the United States.

Consumers' hearty spending over the past few years, helped by tax cuts and low interest rates, has helped keep the economy from suffering a sharper downturn.

Economists said a variety of factors likely boosted confidence: the holidays passing without any attacks, the rise in stock indexes to nearly two-year highs, coming tax refunds and an end to big layoffs.

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