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Old 01-24-2008, 08:01 AM
 
673 posts, read 2,717,254 times
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Point taken - equipment could increase productivity as opposed to production. But then jobs may not increase. Or jobs may even be eliminated - counteracting subsidized consumption.

Increased interest rates would at least contribute to reduced consumption of imports - one way of boosting local demand. A tax incentive that can be used for research, new product development, marketing, etc. (as opposed to being tied to productivity tools) may be another way of boosting demand.

The media just announced a tentative agreement on a stimulus package. We'll soon see what's in Santa's bag for manufacturers struggling to restore balance to the GDP through its the Production and Export variables.
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