As a corollary, would higher interest flows to investors, funds and organizations have boosted consumer income and spending, housing affordability and pricing, employment hiring and wages, bank deposit and loan profitability, etc. more than the flow of cheap cash to the large companies able to access it?
It will also boost consumer incomes, which are already profiting from the low interest rate environment that has reduced borrowing costs for consumers.
That, along with other new welfare measures, is helping some of India's poorest people, lifting rural incomes and boosting consumer markets, but probably also raising labour costs.Surjit Bhalla, a Delhi-based economist, points out that spending on welfare to relieve poverty now represents 2.5% of GDP.
In part, this relates to something I discuss below: bubble-driven wealth effects boosting consumer spending of middle-class people such that even with stagnant incomes, their spending is up.
U.S. personal incomes in October rose at the fastest pace in five and a half years, boosting consumer spending, the Commerce Department reported.
The RBA suggests the falling oil prices have boosted consumers' disposable income.
It boosts consumers' real incomes and fattens firms' profit margins.
Lower inflation is boosting consumers' purchasing power.
That said, cutting taxes generally increases disposable income, which can boost consumer spending, directly enhancing GNP.
Kathy Jones, fixed-income strategist at Charles Schwab, said that while lower oil prices will boost consumer spending, which makes up 68percentt of the U.S. economy, it could also hurt investment, which runs high in the petroleum business.
