In February retail sales bump, wealth effect trumps payroll tax

Retail sales ticked up by 1.1 percent last month according to the Commerce Department. The growth was better than expected, despite higher gas prices and the payroll tax increase that went into effect at the beginning of the year.

Gus Faucher, senior economist with PNC Financial Services Group, joins Marketplace Morning Report host Jeremy Hobson to break down the details behind the numbers.

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.
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"we been hearing ... that if you raise taxes ... that their going to spend less. So, why didn't that happen with this payroll tax increase".

(a stuttering response follows)

Well ... it appears the politicians (and leftist economists) lied to us again.

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