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Thread: What does the economy really need?

  1. #1
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    Default What does the economy really need?

    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-e...3Rpb25z;_ylv=3

  2. #2
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    Default Re: What does the economy really need?

    Surely all the money spent for weapons to use in Afghanistan, Iraq, Syria, and wherever else we are droning, counts as a stimulus.

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    Default Re: What does the economy really need?

    Quote Originally Posted by hokiefan View Post
    the private sector will only generate the jobs we need slowly
    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. . .
    Simpler is better, except when complicated looks really cool.

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    Default Re: What does the economy really need?

    Quote Originally Posted by Norman Bernstein View Post
    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.
    Simpler is better, except when complicated looks really cool.

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    Default Re: What does the economy really need?

    Quote Originally Posted by Norman Bernstein View Post
    Yes, it is their own fault. . .
    I didn't say that, but I also wouldn't say they are entirely without blame either.
    Simpler is better, except when complicated looks really cool.

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    Default Re: What does the economy really need?

    Quote Originally Posted by Paul Pless View Post
    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.
    Tom

    "Leave the gun, take the cannolis"

  7. #7
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    Default Re: What does the economy really need?

    Quote Originally Posted by Paul Pless View Post
    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

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    Default Re: What does the economy really need?

    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.

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    Default Re: What does the economy really need?

    Quote Originally Posted by ccmanuals View Post
    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.
    Simpler is better, except when complicated looks really cool.

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    Default Re: What does the economy really need?

    Quote Originally Posted by Paul Pless View Post
    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.

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