Potential Solution to the Economy Problems

Discussion in 'Politics' started by KMAN, Feb 6, 2009.

  1. KMAN
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    KMAN Senior Member

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    Give anyone who bought a house $10,000 and lower the corporate tax rate to 10% for a year....

    Can someone tell me why this wouldn't work?
     
  2. KMAN
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    KMAN Senior Member

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    Anyone????

    The 2 biggest problems we are facing is unemployment and the housing mess right?

    So why are we trying to spend all of this money in this stimulus that doesn't relate to these 2 issues?
     
    Last edited: Feb 9, 2009
  3. Munin
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    Munin VIP Member

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    Wrong, unemployment is a symptom. When someone has got the fever and he gets high temperature then you don't throw a bucket of water over him to cool him down, do you?

    The problem is the whole banking system (loaning money, ...) doesn't work properly anymore and the fact that nobody spends money anymore. The only thing that gets people spending again, is security over their jobs. This is only achieved when people buy things, for the moment we are into a negative circle: no people buying, less jobs needed -> more unemployed people, less employed people who spend and more employed people who don't want to spend because they re not sure they can have a job in the future -> ...

    That is why if the government spends a lot of people will have stability (people are sure they will keep having their job because they are sure that the spending of the government will employ them indirectly), this will then again result in stability for other people (by the first people who begin buying like they would normally do when they have job stability): a positive circle that can break the negative one that we re in now if this positive one is strong enough (that is why the stimulus bill has to be so "big").


    Making things cheaper is not the main solution, the main issue is people and their jobs (& the banking crisis): income stability, being able to rely on your income for the next couple of years. You won't buy something "expensive" (even with a reduction) if you could lose your job next week and if you know you probably won't get a new job so easy after that.
     
    Last edited: Feb 9, 2009
  4. driveby
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    driveby Gold Member

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    Not bad ideas imo, couple those with a cut in capital gains tax and i think things would get moving....
     
  5. Truthmatters
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    Truthmatters BANNED

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    It would still not be enough for many to keep their homes.

    People would pocket it out of fear and not much would get back into the economy for a long time.

    We need Stimulus people.

    That is why the best use of the money is foodstamps.

    It will keep people from getting into desperate situations and it returns 1.76 in stimulus for every dollar spent.
     
  6. KMAN
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    KMAN Senior Member

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    I think we are saying the same thing regarding jobs... So why don't we give companies more of their own money back so they can hire more people?
     
  7. Truthmatters
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    Truthmatters BANNED

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    Because instead they give their CEOs huge parting bonusues
     
  8. KMAN
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    KMAN Senior Member

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    So, what you are saying is that even though the country is in debt we should spend more and create more debt???? So if I lose my job, I should hire someone to remodel my kitchen????? That doesn't make sense to me, but fine we'll increase foodstamps as well.... So why in the hell do we need a 400 page stimulus bill?

    Regarding the housiong suggestion, I don't care how they spend their $10,000. I am trying to create some incentive for people to buy some of these foreclosed houses and take some pressure off the banks. If the banks get more money coming in they can loan more (but this time loan to responsible borrowers)
     
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  9. editec
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    editec Mr. Forgot-it-All

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    Because that is not what the investment class had done with the enormous tax cuts they have gotten already.

    What they did with it was not hire more people but invest it offshore or into government bonds.

    The problem is not that the SUPPLE SIDE has too little money, (they've had too much for decades!) but that the rest of us (the demand side) have too little.
     
  10. KMAN
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    KMAN Senior Member

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    If the workers of that company don't mind then that's their business. But if my company started doing things I didn't like I would find another job.
     

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