If only it would worked like this (debt, sell, companies)

[whitegiant]

I know that it is not ever going to work but wouldnt it be nice if the economy would do like this. Everyone is not spending money cause they dont have a job but no ones hiring cause no one is spending money. So why dont companies just hire alot of people and lose a little bit of money for a little while then everyone who got hired will start to spend. I know it will never work but wouldnt it be cool if it was this easy.

[Waterboy526]

nm

[Waterboy526]

No offense, but this sounds like a 3rd graders response to fix our economy.

In your scenerio many companies would go out of business and to put that in simple terms, that's why it would never happen.

[ufcrules1]

Originally Posted by Waterboy526

No offense, but this sounds like a 3rd graders response to fix our economy.

In your scenerio many companies would go out of business and to put that in simple terms, that's why it would never happen.

Maybe the original posters idea wasn't great, but at least they are trying to think of something. What is your idea?

[Waterboy526]

Originally Posted by ufcrules1

Maybe the original posters idea wasn't great, but at least they are trying to think of something. What is your idea?

I'm sorry I didn't know we were on the happy feelings board.

I never said I had the fix to our economy. My hope is that capitalist ideals will get us through this crisis. I just don't think bigger government will or ever has solved anything.

[treasurekidd]

At least he's coming up with something besides having the government spend more and more billions that we don't have. The economists will never agree with me, but the best way to fix this COUNTRY is for us to STOP spending as much as we have been, pay off our debts, and save a bunch of money. Say what you want, but it's done my family a world of good. I don't care what any of the so called experts say, but a country full of citizens with no debt and large savings account balances would be much stronger than a nation full of people burdened by major debt.

Government spending and stimulus may make the short term picture a little more rosey, but a return to a "pay-as-you-go", savings oriented population (AND GOVT) is the only real LONG TERM fix for the mess we are in today. My fear is that it is too late, and will never happen because a transformation like this would cause way to much short term pain, and unfortunately, our politicians, and the country as a whole, no longer have the will to sacrifice for the long term.

[AtlanticHomeland]

We need more stuff we can sell the rest of the world, not just cheap plastic stuff, but actual value for value stuff. And other countries need to do the same. I may be speaking of some future mature global economy where every participating nation keeps a balanced trade scenario. Oh, and costs of entitlements and conflicts and non-man-made disasters will be wild cards too.

I was thinking this past week that maybe the earth can only handle so many people and we have surpassed the limit based upon current resource allocation and economy strengths. Basically, huge growing pains are about us and this is a Darwinian stage and that is all. The strong survive is what I am surmising and there is no quantitative easing or green shoots to buffer that.

[tortoise]

Originally Posted by whitegiant

So why dont companies just hire alot of people and lose a little bit of money for a little while then everyone who got hired will start to spend.

Sounds like the General Motors and Chrysler former business models .

[tallrick]

If we can reduce the size of Government, its parasitic influence will no longer be draining the productive economy. Once the non-productive are cut off from their revenue, the rest of us can build a new competitive economy. However, as long as Government exerts its Fascist influence on industry, failure is guaranteed.

[user_id]

Actually, the OP's reasoning is a simplification of what the government is doing as we speak. Its basic Keynesian policy. You cure a general glut by spending, but since you can't control what businesses do you increase government spending. This will increase employment and increase aggregate demand throughout the economy.

In short your reasoning is not 3rd grade at all, its right along the lines of Keynesianism. Nice to see someone actually thinking about the economy!