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  1. “A lot of them just don’t want to look like profligate spenders in hard times.”

    This is the essence of my “brooklyn theory.” people are moving here to show they are more salt of the earth and in touch with the economic climate and want to live someplace more “real.”

  2. By DeadCatBounce on December 8, 2010 10:18 AM

    Ishtar, I am right now thinking about deploying investment capital in the private sector because of possible extension of the tax cuts.
    Without the extension of the cuts, I will not be investing that way.
    Seperately, Mrs DCB has a small business. I think she should expand. She wont until she feels more se4cure about the future.

    PROOF

    That’s why I pulled the plug on funding Butternut Market in 2009.

    MORE PROOF

  3. DCB, my parents have been small business owners majority of my life. The only things that drive them to spend money are demand for services and the need to make improvements. Extention of income taxes breaks aren’t doing it for them. They did say they would like to see a bigger deduction for capital improvements. They have a lot of renovations they want to do. They’ve done some because labor and construction costs are down. They said they would do a lot more if they could get an additional tax break on that.

  4. “Exactly, almost every one of my friends is sitting on cash for fear of un-employement. Almost all in their 40s-50s who squirrel away cash instead of vacations, renovations or long term investing.”

    Isn’t it contradictory to argue (generally, not claiming DeLepp is) the above point and *also* maintain that the country needs to be more fiscally responsible? You can’t have a psychological reorientation of the country toward less overspending while simultaneously trying to get them to spend money. I realize that there’s an actual economic theory that this is bad short term and good long-term, but nobody is going to spend money now and then start saving later when the economy starts back up. Too abstract.

  5. I know a lot of very rish folks who have definitely cut back on spending. There’s no economic reason for them to have done so. Most of them are saying that it has just been the right thing to do, whereas it has not of course. A lot of them just don’t want to look like profligate spenders in hard times.

  6. DCB I call bullshit. I doubt you are actually going to make a go / no go decision on a valid business plan based on whether tax cuts are extended. If you have a valid business plan and capital and motivation and all the other ingredients you’re going for it. Saying marginal tax rates are a binary switch is just b.s.

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