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Consumption taxes are highly regressive and depress consumer spending (as they did in Japan).
A similar trend has been seen in Britain.The effect, of course, is to depress consumer demand.
Wars depress consumer spending and business investment simply by making people less sure about the future.
Bleaker prospects for work and declining wages helped depress consumer spending, which makes up more than half of the economy.
It also would be foolish, because the abrupt withdrawal of benefits would depress consumer demand, leading to the loss of an estimated 400,000 jobs.
That wiped out a full year's worth of wage gains for millions of Americans, and economists expected it to depress consumer sentiment and consumer spending.
Similar(34)
The fall in currency would raise inflation and consequently squeeze real household incomes, depressing consumer spending," they write.
The year's early economic energy was dampened by a spell of nasty winter weather, which depressed consumer spending and January employment growth.
Mr. Gault said that in such a case the economy would be under a cloud of "extreme uncertainty," alarming investors, depressing consumer confidence and hurting businesses.
Such a drop could ripple out to the broader economy by depressing consumer spending, which accounts for about 70percentt of all economic activity.
With retail sales depressed, consumer spending looks set to stay weak in the first three months of 2005.It is easy to see why consumers have become more cautious.
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