The U.S. economy grew at an annual rate of 2.5 percent in the first quarter, well ahead of the paltry 0.4 percent in the final quarter of 2012. Consumer spending led the way, increasing at a rate of 3.2 percent. But leave the champagne on ice for now. Consumer outlays were boosted by involuntary spending on fuel during an unusually cold winter, and by one-time spending of the dividends that were paid out at the very end of last year rather than in 2013, when dividend income became subject to higher taxes.

Worse, it seems that consumers began reining in their spending in February and March, and consumer sentiment declined this month from the March level. When they realized that the payroll tax increase effective at the beginning of the year was taking 2 percent out of their weekly or monthly pay checks, they decided to take a pass on some of the offerings in Walmart, McDonald’s, and other stores that cater to less affluent shoppers. Meanwhile, families with annual incomes in excess of $250,000 can’t help noticing that Obama has taken aim at their dividend checks, has loaded a new Obamacare tax on them, and is now calling for an increase in the rate they pay on their ordinary income. The final straw is the realization that Obamacare is driving up health insurance premiums, dictating prudence when in the malls.