Companies aren't going to hire if there isn't any demand. Without people buying stuff, whether that be necessities or luxury items, there isn't going to be an increase in demand. Without an increase in demand, companies are going to make do with what they have as they have no need to hire more people to increase production. That's Econ 101 and that is what every conservative proposal seems to ignore. Doing things like getting money to the poor and to the middle class (especially the lower 2/3rds of the middle class), who will spend it via things like increased unemployment benefits or wage increases to those who are working via income rebates will help to boost the economy. Cutting taxes to the upper class only serves to add to the deficit as they will just bank any extra money. They have enough disposable income to make it through most financial crises and will continue to sped at close to normal rate. So getting them more money has little to no effect on the economy.
Eric -----Original Message----- From: Sam [mailto:[email protected]] Sent: Tuesday, April 12, 2011 10:44 To: cf-community Subject: Re: [Economics] Of the 1%, by the 1% and For the 1% On Tue, Apr 12, 2011 at 11:28 AM, Gruss Gott <[email protected]> wrote: > (1.) Austerity, i.e., cut government spending. You can sell stuff, > including your house, your clothes etc. That might help your balance > sheet but it doesn't do shit for growth. That is, it's going to be > real tough to find a job with no house and no suits. You rent. Good choice. > (2.) Credit. You borrow and invest: you buy new suits, get training, > go to school, etc. That is, make investments for growth with credit. This works if you're untrained or specifically trained and your factory gets shuttered. Right now most folks don't need to be retrained to flip burgers. They need Co's to have the confidence to hire. > Obviously the correct answer is #2. Rarely > The Europeans (Greece, Ireland, UK) have selected option #1. If that > was the correct option they should be booming now, especially Ireland. > Well ... they isn't. > > Now it's our choice. Still want option #1? Hmmm, didn't Ireland build their economy in borrowed money? Meaning they cut corp tax too low to bring in the business. You know like #2 and now the bill is due and they can't pay it so they are borrowing money again as in #2. When did Ireland do the #1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:336224 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
