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View Full Version : What does the economy really need?



hokiefan
06-19-2012, 02:25 PM
This article makes two statements. The first is that the current lack of jobs is due to reduced consumer demand as the result of the burst housing bubble. I find this hard to argue with. The second statement is that because of the first statement, the private sector will only generate the jobs we need slowly, so the government needs to generate job demand through stimulus of some sort. This sounds logical to me, but is a complete non-starter with many conservatives. Thoughts...

http://finance.yahoo.com/blogs/the-exchange/baker-story-housing-crash-recession-politicians-don-t-170039954.html;_ylt=AntTTfiQTooEdYfK6gL7NA6iuYdG;_ ylu=X3oDMTNyNHZ0aG5nBG1pdANGUCBUb3AgU3RvcnkgTGVmdA Rwa2cDMzRmNmU3Y2ItNmQ2OS0zNGM2LTlhMmQtZWY3YzRjOTIz M2ExBHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyAzRlMjg4MzYwLW JhMzAtMTFlMS1iZWVhLTFhM2Y2ZjI5NDNhMA--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRw c3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

David W Pratt
06-19-2012, 02:40 PM
Surely all the money spent for weapons to use in Afghanistan, Iraq, Syria, and wherever else we are droning, counts as a stimulus.

Paul Pless
06-19-2012, 02:51 PM
the private sector will only generate the jobs we need slowlyDo you remember when 'they' told us this combined recession and period of recovery would last decade or more? That was only three years ago. . .

Paul Pless
06-19-2012, 02:52 PM
The consumer middle class is the key...it has ALWAYS been the key.And its always been unsustainable, the American consumer middle class is driven by and reliant on debt. Too much so.

Paul Pless
06-19-2012, 02:58 PM
Yes, it is their own fault. . .I didn't say that, but I also wouldn't say they are entirely without blame either.

ccmanuals
06-19-2012, 03:06 PM
And its always been unsustainable, the American consumer middle class is driven by and reliant on debt. Too much so.

Actually, all businesses are driven by credit and debt. During the crash of 2008 General Electric made a frantic call to Hank Paulson complaining that if they didn't get credit they would have to shut down GE. I can only imagine what would have happened if GE had in fact had to close their doors.

hokiefan
06-19-2012, 03:56 PM
Do you remember when 'they' told us this combined recession and period of recovery would last decade or more? That was only three years ago. . .

Yes I remember that. Not everyone seems to though, or maybe we didn't believe it when we heard it. It does seem that the folks I know that were hit the hardest and longest were in/or around the housing business.

Cheers,

Bobby

Nicholas Scheuer
06-19-2012, 04:06 PM
Americans are too accustomed to "instant gratification", and so "we want the economy fixed NOW! Not ten years fro now!". That makes it easy for Romney to flap his mouth about "Obama has had three years".

Romney isn't equal to Obama on his best day.

Paul Pless
06-19-2012, 04:07 PM
Actually, all businesses are driven by credit and debt. Not to the extant that consumers use it to drive the economy though. Business operations are driven by cash flow, and access to credit helps to alleviate problems associated with dips in cash flow.

Cuyahoga Chuck
06-19-2012, 04:40 PM
And its always been unsustainable, the American consumer middle class is driven by and reliant on debt. Too much so.

Some or most of that debt could easily have sprung from the fact that middle-class wages have been stagnant or declining for 30 years or more.