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Money is fungible. Look up the word.
Yeah I know what the word means, thanks. You must surely think you're the smartest person in the world.
Growth is generated by business investment, not consumer spending.
Right, like I said, we don't need consumer spending for growth. We just need people to open up businesses. No consumers required. I think we tried that same philosophy with houses a few years ago, did it work out?
Uh...what happens to those business when nobody buys anything from them?
.
Money is fungible. Look up the word.
Yeah I know what the word means, thanks. You must surely think you're the smartest person in the world.
Growth is generated by business investment, not consumer spending.
Right, like I said, we don't need consumer spending for growth. We just need people to open up businesses. No consumers required. I think we tried that same philosophy with houses a few years ago, did it work out?
Uh...what happens to those business when nobody buys anything from them?
Nearly 3/4 of our economy is driven by consumer spending. Businesses are not going to start, expand, or hire until the outlook for consumer spending improves. Faced with the Obama Tax Hikes, many consumers are going to be cutting or holding spending flat.
Business investment is necessary for growth, but without consumers, there is not a good rationale for much of it.
Uh...what happens to those business when nobody buys anything from them?
.
If they miscalculated then they go out of business. But that happens AFTER they have hired workers and bought equipment.
Uh...what happens to those business when nobody buys anything from them?
.
If they miscalculated then they go out of business. But that happens AFTER they have hired workers and bought equipment.
And what good would that investment have accomplished when that business fails and the workers lose their jobs? How does that help fuel growth?
You must think everyone is going to bet bail out funds from the Feds to keep insolvent operations afloat.
no....a trend of positive consumer spending on what already exists... sets investors on the road to investing in new businesses or projects.
NO ONE smart in business will invest anything extra in a downward trending....consumer spending market place....unless a fool.
most businesses try to figure out how to CUT spending.... during those periods.
Faced with the Obama Tax Hikes, many consumers are going to be cutting or holding spending flat.
Again, business investment precedes growth, it does not lag it. That investment stems from a forward looking stance anticipating consumer demand, not responding to it.
THey hired people. They spent money.
How is that worse than the U.S. gov't sending people checks?
I wrote, if they miscalculated. But if they didnt, they will be successful.
Again, investment precedes growth, not vice versa.
no....a trend of positive consumer spending on what already exists... sets investors on the road to investing in new businesses or projects.
NO ONE smart in business will invest anything extra in a downward trending....consumer spending market place....unless a fool.
most businesses try to figure out how to CUT spending.... during those periods.
We've already determined you are an ignoramus of the first order.
Even in down periods businesses will invest. In fact, it makes it easier since they can pick up assets for next to nothing. Notice all the M&A activity these days?
Businesses look forward to trends, not backwards. And one of the things they look at is future gov't policy. Which is why we havent seen any upturn since Obama's policies are to punish any profit making enterprise with higher taxes and more regulation.
That investment stems from a forward looking stance anticipating consumer demand
THey hired people. They spent money.
How is that worse than the U.S. gov't sending people checks?
I wrote, if they miscalculated. But if they didnt, they will be successful.
Again, investment precedes growth, not vice versa.
You are purposely misunderstanding my post.
Investment certainly precedes the growth, but it is based upon expectations of future returns. In the current environment, those expectations are much lower than in past recoveries. The heavy role of government is sucking the air out of the private sector.
Pouring money into programs that ensure high government employment at the state and local levels, and hiring a bunch of temporary census workers is not a growth strategy.
he is agreeing with us, even though the rabbi does not want to admit it...especially with his statement of:
That investment stems from a forward looking stance anticipating consumer demand
No business pulls THAT 'foward looking stance' out of no where....they look at how the market is TRENDING....and if it is trending down, for the business sector that they are entering, they more than likely will sit back until the FORWARD OUTLOOK is BETTER, or projecting upwards...
In other words, consumer spending dictates investment.
I would suggest it the vast amount of wealth lost during this recession ($12 trillion in spending power) that is sucking the life out of it.
When business is retracting because of lower demand government spending it is all that is left.
Which is why we havent seen any upturn
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 5.9 percent in the fourth quarter of 2009
since Obama's policies are to punish any profit making enterprise with higher taxes and more regulation.
I'm not a business owner. But if I ever were to open one, I'd open a pizza shop. If my taxes went up - I'd actually try to sell more pizza to make up the difference - I wouldn't close the shop down, bc then I would starve to death.
But that's just me. I guess other business owners don't want to eat.
I would suggest it the vast amount of wealth lost during this recession ($12 trillion in spending power) that is sucking the life out of it.
When business is retracting because of lower demand government spending it is all that is left.
No, it most certainly is not.
Even JFK recognized that cutting taxes spurs economic growth.
The total tax burden as a percent of income on a median American family has DOUBLED since the 1950s. That is the problem.
