Isn't this economic shutdown what Conservatives have been telling us America needs? What changed? (minimum wage, salary)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Think back to all the conversations about American workers & wages that Conservatives have chimed in on regarding income inequality... Minimum wage... Overtime threshold for salary workers... Stagnating wages for the working class... Basic living wages for bottom earners... Retirement insecurity... Etc.
Remember how Conservatives always boiled the issue down to Americans didn't know how to live within their means? That the real problem was that Americans need to stop buying video games and brunches and iphones they can't afford? That the only solution to income inequality was that people need to live within their means?
Guess what? This economic shutdown is almost exactly what would happen if all the struggling American workers in this country "lived within their means." Smart people have been trying to explain this to Conservatives for years: the American economy is based on people spending money. Anything that abruptly cuts off the flow of money in the economy is going to crater it.
If the millions of people who can't put together $400 on the spot for an emergency suddenly became penny-pinchers, this is what the economy would look like.
If the millions of people being crushed under student loan debt suddenly stopped going out to get brunch, this is what the economy would look like.
If the millions of people who struggle to make ends meet b/c wages have stagnated suddenly became "responsible" and stopped trying to spend money on more than just the bare necessities, this is what the economy would like.
Just to make this clear again: the solution to the economic inequality in this country is NOT to tell people to stop buying iPhones. The solution is to rebalance the wage inequality so that people can continue to spend AND take care of their long-term responsibilities.
Think back to all the conversations about American workers & wages that Conservatives have chimed in on regarding income inequality... Minimum wage... Overtime threshold for salary workers... Stagnating wages for the working class... Basic living wages for bottom earners... Retirement insecurity... Etc.
Remember how Conservatives always boiled the issue down to Americans didn't know how to live within their means? That the real problem was that Americans need to stop buying video games and brunches and iphones they can't afford? That the only solution to income inequality was that people need to live within their means?
Guess what? This economic shutdown is almost exactly what would happen if all the struggling American workers in this country "lived within their means." Smart people have been trying to explain this to Conservatives for years: the American economy is based on people spending money. Anything that abruptly cuts off the flow of money in the economy is going to crater it.
If the millions of people who can't put together $400 on the spot for an emergency suddenly became penny-pinchers, this is what the economy would look like.
If the millions of people being crushed under student loan debt suddenly stopped going out to get brunch, this is what the economy would look like.
If the millions of people who struggle to make ends meet b/c wages have stagnated suddenly became "responsible" and stopped trying to spend money on more than just the bare necessities, this is what the economy would like.
Just to make this clear again: the solution to the economic inequality in this country is NOT to tell people to stop buying iPhones. The solution is to rebalance the wage inequality so that people can continue to spend AND take care of their long-term responsibilities.
You expect conservatives to be consistent in their principles and to understand basic economics??
These are the same people who were fuming about the debt under Obama but don't have a problem with a $2 trillion dollar bailout under Trump.
Guess what? This economic shutdown is almost exactly what would happen if all the struggling American workers in this country "lived within their means."
Can you provide your working on the Math there for us?
Can you provide your working on the Math there for us?
Sure. Economy - spending = recession
Quote:
Originally Posted by Bitey
There's so much economic ignorance in this post it would take a thesis to unpack it.
Living within your means doesn't mean 25 million people just suddenly stop working and economic productivity grinds to a halt.
This economic slowdown is due to most people cutting their discretionary spending bc of stay at home orders ie not going out to eat, watch movies, buying goods and services, etc
The remedy that Conservatives bring up for the growing income disparity is that most people need to cut back on their discretionary spending to "live within their means" ie not going out to eat, watch movies, buying goods and services, etc
Explain how you think cutting off economic activity in one scenario leads to a recession, but not in the other?
Well geez, I don't know -- maybe because increased savings PROVIDES liquidity to the economy instead of STARVING it of liquidity like we're doing now? Unless of course you think all those extra savings are going to be stuffed under mattresses or buried in peoples' back yards.
OP thinks living within your means equates to an economic shutdown, where people don’t buy anything?
I’ve always lived within my means, which meant a Samsung phone instead of an Apple one, flounder instead of halibut at the grocery, Outback instead of Morton’s, and Crowne Plaza instead of the St. Regis. With the savings, I do not have to have other people bail me out during a hard patch. (Did you see those big SUVs and nice cars in the food line out in California?) it doesn’t mean I stopped spending entirely.
OP is simply trying to justify irresponsible behavior. Unless you are really poor, there is no excuse not to adjust your spending to within your means - which includes building a savings account.
Well geez, I don't know -- maybe because increased savings PROVIDES liquidity to the economy instead of STARVING it of liquidity? Unless of course you think all those extra savings are going to be stuffed under mattresses or buried in peoples' back yards.
Bc your local restaurants & movie theaters pay their bills with what you have in savings? Or are you thinking that banks are going to loan them money when their customer base and business model are in the process of imploding?
OP thinks living within your means equates to an economic shutdown, where people don’t buy anything?
I’ve always lived within my means, which meant a Samsung phone instead of an Apple one, flounder instead of halibut at the grocery, Outback instead of Morton’s, and Crowne Plaza instead of the St. Regis. With the savings, I do not have to have other people bail me out during a hard patch. (Did you see those big SUVs and nice cars in the food line out in California?) it doesn’t mean I stopped spending entirely.
OP is simply trying to justify irresponsible behavior. Unless you are really poor, there is no excuse not to adjust your spending to within your means - which includes building a savings account.
What is it that you think happens to the economy when a gigantic slice of America "adjusts their spending"?
You understand that means that there's some industry or company that currently exists on that spending, and cutting it off is going to hurt that industry or company right?
And if most people are hurting multiple industries and companies by cutting back a little, that leads to a recession right?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
