Originally Posted By Mr X Okay, so they're sending out tax rebate checks apparently. Around $1200 last I checked. But how will that serve to "stimulate" the economy, when so many people will simply use it to pay down debt or (gasp!) save it? How much better would it be if the gov't sent out "store credit" vouchers (to be cashed in for actual money by the business owners), usable anywhere as long as you buy "stuff" with it? I'm a genius!
Originally Posted By Sport Goofy What if they actually invested in new infrastructure or development of new industries that would have a lasting impact on job creation and economic growth? This is nothing more than and electio year political game. The politicians could care less about the health of the economy except that it impacts who might vote for them.
Originally Posted By SuperDry <<< But how will that serve to "stimulate" the economy, when so many people will simply use it to pay down debt or (gasp!) save it? >>> The answer is that most people below a certain income level will just spend the money. Even if they ostensibly use it to pay down debt, the money that they otherwise would have used to do so will get spent. It's actually not a bad way to stimulate the economy. There's no reason to come up with a complicated scheme to make sure that people will spend the money when this is going to happen by itself anyway. I think most of the controversy is in the way that the total amount of money gets distributed among those likely to spend everything they get. Do you include people that paid no income tax? Those people are perhaps the MOST likely to spend everything they get, since they make so little, but some think that this is unfair.
Originally Posted By Kar2oonMan What you ought to do is take the economy out for a nice dinner. Get a quiet booth in the back, order a nice bottle of wine. Ask the economy lots of questions. Not "yes" or "no" questions, but questions that show we're interested in what makes the economy tick. After dinner, maybe a moonlight stroll downtown, or better yet, in a quiet countryside, especially if there's a lake. Maybe remind the economy that it's been drinking, and it might be better to get a room somewhere. Then you play some soft music in the car ride to the motel, mayeb even stop somewhere for another drink. At that point you present the economy with a poem you've written about it. That's how you stimulate an economy.
Originally Posted By Sport Goofy ^^ You're so old-fashioned 2oony. These days, you skip all that stuff and just take a blue pill.
Originally Posted By imadisneygal But if the ecomony is still up after 4 hours you must take it to the emergeny room.
Originally Posted By Kar2oonMan I always thought a call to the Guiness Book of World Records made more sense if that happened!
Originally Posted By imadisneygal The phone call would certainly be less painful than the injections one would be given! Definitely try that first...
Originally Posted By mrkthompsn Why not just let the economy be bad? It's like having a cold. Don't fight the cold, just have the cold. It makes your immunities better. Having a bad economy forces business to become more effective and efficient. Having a bad economy forces people to spend less and save more. The economy self-improves.
Originally Posted By Mr X Well the government trying to "stop" things usually ends up working like stops the blood from gushing but doesn't address the actual injury. Not quite like a cold, more like a gangrenous wound on your leg. You don't take medicine for that, or put a bandaid over it. You chop off the leg. Then you get better. THAT'S what needs to happen. The government keeping these corrupt and bankrupt companies alive only causes the problem to persist.
Originally Posted By mrkthompsn "The government keeping these corrupt and bankrupt companies alive only causes the problem to persist." Does this imply that the companies ought to be owned and managed by the government in order for the government to be able to do that? How far should that extend? Does the government own and manage you? If not, a fraction of you? How much are you willing to fractionalize yourself? I disagree also that this economy is really THAT much of a crisis any. What would you call an economy that had zero gas at the gas station, zero groceries at the store, zero electricity, zero corn in the field, and zero stock? Is there a different word for that other that "crisis"?
Originally Posted By Mr X No, the companies should disappear (as many already have). Happens every recession/depression. Crappy companies are weeded out.
Originally Posted By Mr X They are "keeping them alive" by pumping too much liquidity into the system and allowing for a return to the corrupt practices that got us here in the first place. And I also agree with you that the economy is not in a HUGE crisis, but it is wounded, mostly due to those idiots that did such corrupt things (the lenders and banks, mostly).
Originally Posted By mrkthompsn <<No, the companies should disappear (as many already have). Happens every recession/depression. Crappy companies are weeded out.>> I fully agree with that. I could even see it happening to Disney someday if they're not careful. As much as I promote freedom as much as possible, I have worked at too many companies who are led and mismanaged by certain individuals who are truly incapable of management, and should be personally blacklisted from operating any publically owned company. There are a few days where I do feel like Communism is the proper way. The difference between a left-wing Democrat and myself ... is that I just admit it.
Originally Posted By jonvn "Why not just let the economy be bad?" Yes, that worked so well after 1929.
Originally Posted By mrkthompsn Actually, it did. The world took so many lessons-learned from 1929 that a disaster of that magnitude has never happened since, and there are many controls in place to avoid it from repeating. Today's economic structure is significantly more stable as a result of 1929. We've developed strong immunities to that terrible virus - but had to ingest the virus to build the immunities. Thanks, great example. That's the meaning and power of a free market.
Originally Posted By Mr X Hubris is all I hear from you, from top to bottom. "it's different this time" "we've learned" "I can't see past 100 years of history" That's what I get from you. Not to mention your nasty attitude towards the destitute. WOW...I hope your hubris isn't a bad sign...I really hope so! You hardly understand "the meaning and power of a free market"...else you wouldn't say such a thing.
