In turn, businesses rely on consumers through their choices to signal their desires and preferences in order to produce the products that consumers want. If consumers are not well informed, it is difficult for them to be effective in conveying to businesses what they most want and in rewarding those businesses that do produce such products.
Such effects on private consumption have been anticipated since tax hikes place a burden on consumers, but they have been somewhat larger than our expectations. On top of this, I would note the decline in crude oil prices, which amounted to a 60 percent drop within about six months, as the most unexpected event.