Thursday, July 23, 2009

McD's COO on last year's Q2 Fiscal Stimulus

The AP is reporting some details of McDonald's 2Q operating results tonight: Read article here.

"...Chief Operating Officer Ralph Alvarez said on a conference call with investors that June may have been a difficult month for fast-food operators because chains benefited last year from stimulus checks and a better economy. "We know we had benefit last year from the incentives checks that went out from the government," he said on the call. "And back then, you know, people weren't in saving mode..."

In an equivalent way, the U.S. economy could immediately benefit broadly from a similar tax refund this year. Fiscal policy-makers, please take note.

1 comment:

Mike Norman said...

Yes, there's evidence all around us. The MacDonald's story is a good example. And there is evidence that the deficit is adding to private savings, but our policymakers and most Americans for that matter, choose to ignore reality! Good post, Matt!