Businesses aren't the consumers referred to in consumer confidence Jerry and you know that.
They have been so successful because they had a head start. When you are scrapping by just to survivor, you aren't able to invest in things that big returns that keep you wealthy. They aren't working for their wages...they inherited that money and because they have a HUGE buffer against the economy, they are able to do things to maintain their wealth that the rest of us schlubs cannot do. It plays into it because if consumer confidence is low, consumers (the aforementioned schlubs) don't buy as much because they are holding onto their money rather than spending it on "luxury" items. When consumer confidence is high, if you have enough to replace that old TV with anew widescreen, you probably will. Businesses are not spending because they cannot get the funding to spend and republicans have blocked every effort to get money to businesses. -----Original Message----- From: Jerry Barnes [mailto:[email protected]] Sent: Monday, September 06, 2010 12:11 PM To: cf-community Subject: Re: How to end the great recession "Isn't it in large part the purchasing power of the US Middle Class?" Purchasing power would certainly be part of what drives the US economy. So is consumer confidence. There is none right now. Business does not trust this administration. They do not know what new taxes are coming, what new employer mandates are coming, and so on. As a result, business is not expanding. They are hoarding. This is keeping salaries flat (except for Federal employees), innovation at a minimum, and consumers at home. "That consumerist drive that keeps things turning, and keeps people buying new clothes, new gadgets, new cars new [insert thing here]?" Yes it does. How does consumer confidence play into this? "Do you see a problem with the disparity between the wealthy and the middle class?" Vivec, how did this disparity happen? There have always been wealthy people. Why has the disparity grown? Are you going to blame the rich? Well of course they are somewhat culpable. Almost everyone tries to protect what they have and get more. It's human nature. What have they been so successful? They couldn't have done it on their own so I believe that the answer is obvious. I have read Mr. Reich's article several times now. The more I read it, the more I realize how bad it is. He doesn't really say anything new. I think I know why. Read the footer. Robert B. Reich, a secretary of labor in the Clinton administration, is a professor of public policy at the University of California, Berkeley, and the author of the forthcoming "Aftershock: The Next Economy and America's Future." Mr. Reich has a new book coming out. Obviously, he caters to a certain crowd, like all authors do. This editorial is a pure piece of capitalist propaganda aimed at the anti-capitalistic crowd. He does all of the following, which progressives seem to love: 1. Target the rich. Make them pay. 2. Praise health care: "Health-care reform is an important step forward but it's not nearly enough. " 3. Push for Cap and Tax: "We might consider, for example, extending the earned income tax credit all the way up through the middle class, and paying for it with a tax on carbon." 4. Praise progressive hero FDR: "New Deal measures - Social Security, a 40-hour work week with time-and-a-half overtime, unemployment insurance, the right to form unions and bargain collectively, the minimum wage - leveled the playing field. " 5. Praise unions. See the quote above. 6.. Praise redistribution of wealth: "Policies that generate more widely shared prosperity lead to stronger and more sustainable economic growth - and that's good for everyone. " 7. Demand security: "Another step: workers who lose their jobs and have to settle for positions that pay less could qualify for "earnings insurance" that would pay half the salary difference for two years;" So, I might have been wrong when I called him a crackpot progressive economist. He might actually be shrewd self promoter with his eye on the bottom line. You know, a greedy capitalist. J - No man's life, liberty, or property is safe while the legislature is in session. - Mark Twain The artificial aristocracy is a mischievous ingredient in government, and provisions should be made to prevent its ascendancy. - Thomas J ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology-Michael-Dinowitz/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:326933 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
