I'm hoping to return to investment psychology "paying yourself first" and maxing out my 2012 contribution.

That said, as someone mentioned in the other thread, there is also a psychological component, and it's sometimes correct to go with the suboptimal financial solution in order to appease the psyche...

A third group, the upper middle class/slightly rich folks, would invest it, since they have less shelters than the really rich folks and more of their real income passes through and is taxed as ordinary income.It seems in all three cases, the extra money still goes into the economy and creates jobs and income for people.With regard to the psychological effect of the cuts, I agree with your point 100% that it will affect the middle class the most.Originally posted by J Scott:- Changing economic policy works when it changes behavior -- get people to do things that otherwise weren't doing, and the economy is affected.

There is just some psychological importance to it for them.

And just psychology of such a traumatic experience will slow the market.

Believe me, I know, but I think it's a psychological thing.

What's hard is the psychology.

For me, my psychological issues/thoughts about not having enough money were more difficult to get past than actually the financial position I was in.Mywife was at a miserable corporate sales job so sheleft thesalesjob to focus on her photography business that unfortunately has yet to make a profit.

I understand your opinion but I must point out that they use psychological sales to build trust.

Even things I thought were pointless, like psychology and statistics have helped me.