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I know this forum is full of right wingers so I'd like to know what your solution is to increase consumer demand.
It is none of the above.
American consumers are very fickle compared with European and Asian consumers. Well not so much Asian now..but I digress: When we are not in the mood to consume we are not in the mood big time. But when we are we consume like Artie Lange on a Vegas binge.
The keeping up with the Jones syndrome is destroying this nation from the inside out. In many other cultures showing off wealth is frowned upon. I have the utmost respect for the millionaire next door compared with the flashy porsche driving hot head who probably has 10:1 debt to equity.
No, but you surely can't run a business with that mindset. Please let me know if you disagree. It seems that to you, a restaurant would do better if it overproduced knowing that to be the right, fiscally conservative, idea to profitability? After all, excessive demand would be a disaster!
Why are you using a microeconomic example to make a macroeconomic point? They are two different things.
Why on earth do you want to increase consumer demand? Spending too much without producing anything is how we got ourselves into this mess. Spending is NOT the problem. Lack of PRODUCTION is the problem. We need to bring manufacturing back to this country and jobs.
Don't believe the Keynsians who say spending is the problem. Spending without commensurate production is what got this country into so much DEBT!
Actually, you need both. Spending on American products and services is the way out.
I would spend a lot more money if i was not so scared of losing my job
its constant fear anymore -
bottom line if i have money from a steady job that i feel SECURE i will not lose i would spend...
You gave one view... somebody who is not spending because they don't have any extra funds and fear losing their job.
But there are many people and business that have cash, but are not spending.
I think the reason is the same for both groups. It's uncertainty. It's that we don't know what to plan for, so we do nothing. We don't know if Obama care will go away or just screw up health care. We don't know if Obama will bail out more companies (his buddies) or just let the losers fail. We don't know what the stock markets will look like in a year, 2 years or five years.... and have no confidence that our investments will grow. We don't know what the tax rates will be next year or five years from now. We hear "tax the rich", but don't know what that means and historically it morphs into "tax everybody". We don't know if our SS and Medicare benefits will go away or just get reduced.
Bottom line is there is tremendous uncertainty all across the country.
I have a sizable fund that is just sitting there... don't know if I should pay off my home loan, buy an annuity, buy a new car, invest in the market or just sit and wait until there is a little more visibility into the financial future.
Millions of businesses and individuals are holding off spending due to uncertainty.
American consumers are very fickle compared with European and Asian consumers. Well not so much Asian now..but I digress: When we are not in the mood to consume we are not in the mood big time. But when we are we consume like Artie Lange on a Vegas binge.
The keeping up with the Jones syndrome is destroying this nation from the inside out. In many other cultures showing off wealth is frowned upon. I have the utmost respect for the millionaire next door compared with the flashy porsche driving hot head who probably has 10:1 debt to equity.
I think you are using anecdotal events to develop a general conclusion which is quite wrong.
Lot's of Porsche owners pay cash for their cars. And I have a lot of high income friends and none have a "keep up with the Joneses" attitude.
The Chinese have implemented your plan.
1- They don't have high statutory corporate tax rate (effective tax rates are a different story).
2- They love their non-existence of EPA. People also get to enjoy some really colorful rivers and awesome sunrise. On the bright side, there is little use for sunblock and more consumers for breathing masks.
3- It is why America is key to their economy.
Thats why they have a plant up and running in 18 months in China where i live they have to go thru 18 months or more of red tape to get air water permits before they can break ground...looks like the process could be sped up some don't you think.Progress here is being held up by the EPA now and what i said is what Obama said "if the EPA is holding up progress lets do without all the regulations that hold up progress".
Thats why they have a plant up and running in 18 months in China where i live they have to go thru 18 months or more of red tape to get air water permits before they can break ground...looks like the process could be sped up some don't you think.Progress here is being held up by the EPA now and what i said is what Obama said "if the EPA is holding up progress lets do without all the regulations that hold up progress".
Thats why they have a plant up and running in 18 months in China where i live they have to go thru 18 months or more of red tape to get air water permits before they can break ground...looks like the process could be sped up some don't you think.Progress here is being held up by the EPA now and what i said is what Obama said "if the EPA is holding up progress lets do without all the regulations that hold up progress".
If they start reigning in Wall Street. If not, I got mine...I love to see ashley furniture, jcpenney and sears begging for customers.
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