All you Keynes followers need to remember that having people working
productively and actually producing some goods or services will have a double
positive effects on the economy. People spend more and because they have money
and because there are goods and services to buy. If those goods and services are
produced by Americans, the money goes around for another lap furthering the US
economy. Handing out money to people to buy what they need helps
them in the short term, but when they buy the goods from China, only a small
fraction of that money helps the US economy. China does not buy enough of our
goods to get that money back to our economy. They just loan it to us, earning
interest from us, causing our economy to slow further. We cannot fix the economy
without improving our productivity and selling our goods to ourselves and other
countries. We cannot borrow and spend our way out of this economic
mess. We need to work and produce our way out of this mess.
Credit should be MUCH harder to get. Kids should be driving 20 year old cars,
not 50,000 dollar pickups.
In a consumer society, spending is essential for maintaining a robust economy.
Asking people to be wise consumers and not go into debt and use credit is
telling businesses that their products and services need to be regulated by
prudent spending habits.What will all those entrepreneurs with slick
ideas and a desire to make a quick buck do if potential customers actually think
carefully before making a purchase? The fact is, we need reckless spending to
get the economy going. It doesn't matter if people actually need what they
buy, they just need to spend. If people cut back just 10%, that would mean 10%
less in economic growth, 10% less in profits, and 10% decline additional
purchasing power which would have been generated by the 10% that would have been
available because of consumer demand.The wide use of credit and
comsumer debt drives our economy. If it gets out of hand, business only wants
to cut back, but it doesn't want to cut back too much lest it suffers.
Select business wants to eliminate the competition while these select businesses
stay active and profitable.
Now MM, that is one thing I can heartily agree upon with you!May
next year be filled with smiles for all of us.
To all my friends on D.N. with whom I have had many interesting discussions, I
wish you all a Merry Christmas and a happy New Year! I want all of you to know I
hold no grudges and have enjoyed our discussions for the most part! While we can
honestly disagree, we still can learn much from each other if we so choose! See
you in 2013!
Mav, agreed. Maybe it's time to resurrect Occupy Wall Street in a more
Where was this concern when we passed Medicare Part D, invaded 2 countries, and
gave tax cuts to the rich?The truth is, debt is exactly what repubs
want. That way, they can cut and destroy valuable social programs, hurt the
middle-class even more, and usurp more power for the corporate elite. Fellow Mormons should be familiar with this story. The King Men who wished to
overthrow the Nephite government. We see history repeat itself in the Book of
Mormon yet we seem to ignore that history is repeating itself in modern day
America. The corporate elite, like Mitt Romney, are merely usurping
power and taking it away from Joe Sixpack. When will we fight back? Our
Democracy is at stake here! It was never meant to be controlled by the 1
percent. Corporations ARE NOT people!
True.But we also need to put a stop on deregulation of banks and
Wall Street and look to greater wisdom in how to manage the Big Money interests
that are currently able to swindle ordinary Americans.