On Sat, Jul 23, 2011 at 3:14 PM, Grussgott <[email protected]> wrote:
>
> The question on the table seems to be HOW do we incent purchasing such that 
> we create growth?

You assumption is we need to trick folks into buying  unneeded items
to keep people working. If that were the case we'd just need to elect
Jobs as president. People can still save and have the economy rolling
again. Many jobs would come available with small businesses hiring
just to ease the work load. The more jobs will mean more spending for
those needs above the bare minimum. Snowball effect. I say so many
have cut back so far that if they start earning again and raise there
standings that will be the turnaround we need. We should also start
drilling in the gulf. But who cares what the courts say when your the
boss.

> But if I didn't have that demand I sure wouldn't build a new factory; I might 
> invest to lower ops costs but then I'd sit tight.  And even if the government 
> cut my taxes that wouldn't change my demand picture so I'd still sit tight.  
> And that seems to be where our economy is.

I see it has you are working at full capacity and need a new factory
to ease things up and lower costs in the long term buy utilizing new
tech etc. Question is do you play it safe and wait out this admin or
do you gamble everything and pray they don't regulate and tax you into
bankruptcy. But that's just one example, not all companies are
manufacturing.

> So I'm back to Keynes; if business isn't spending and consumers aren't 
> spending the only way to kick the economy in the arse is government spending. 
>  But then what about the debt?  I dunno but I can't get around the logic of 
> that conclusion.

We did that, against the advice of some wise folks, and it was a
trillion dollar failure. Even the Bush $200 or $300 tax rebate
stimulus was a stupid waste of money so why up the ante?
And as Rob pointed out, there's no guarantee the money will even be spent h

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