Originally Posted by petegz28
NO! Why? Because you are offsetting that cost by putting more disposable income into the economy.
In other words, if I am spending $200 a month less on gas and food I am spending that $200 in your store. That increases your customer base thus allowing to compensate for higher interest rates
The government gets more $ through increased sales tax and incomes from the increased spending in businesses
See, that's called growing the tax base. As a business owner it would be easier to handle higher rates if I have more people walking through my door because they have more money to spend in my shop instead of the gas station.
On the other hand if customers are still spending out the ass at the gas station they don't have extra $ to spend in my shop and higher taxes are going to hurt even worse.
But that two hundred dollars will now go towards your car payment, credit cards and loans. I just dont see that it would make a real difference.
The business would also have to pay higher interest rates, therefor charging that same customer more.