Mark Zandi Increase Quotations

The clearest way to cut some of this fiscal drag would be to extend the current payroll tax holiday and increase it - as proposed by President Barack Obama. This would cut the fiscal drag by almost half.

Given the recent surge in energy prices and higher medical costs, many will not be made whole by the increase. The increase is backwards looking; it represents inflation over the last year. In the near term, inflation will be greater.

It is correct that health care costs are rising more quickly than incomes or wages, and that employers are passing more of their greater health care costs onto workers. But the increase in health care spending is not greater than the increase in incomes or wages.

At best, people should prepare for no pay increase and no bonus, something they have been getting a lot of. At worst, they should be thinking they may need to change occupations.

Gasoline, home heating prices, they are very volatile. Some months they're up, some months they're down. They depend on the vagaries of the weather ? It's warm, it's cold. The big decline I think will result in a big increase next month.