How about the fact that a majority of our wealth has flowed to the infamous 1%... Should the government be motivated to stimulate the private sector and top earners to spend more, saving less and putting more money into circulation or do you see it as a simple matter of government deficit spending?
It's a huge problem. Spending drives the economy, and saving is a drag on consumption, harming the economy. The government should do its best to get dollars into the hands of the poor and middle class, and do all it can to encourage spending.
Savings harms the economy? All growth is the result of savings. Only someone trying to justify a huge wasteful rapacious government would claim savings is harmful.
I agree with Dovahkiin on this one... Our economy thrives on the transfer of funds from one hand to another. If people stopped borrowing and spending and simply saved then our GDP would tank and our economy would slow and the debt would increase. Think about it, the "debt" that conservatives are so worried about is mostly comprised of domestic investment in treasury bonds. If the people tighten up and save more than spend then they keep their money in savings and investment accounts adding to the debt and decreasing GDP.
bripat9643, that noodle behind your eyes seems to be firing alright but you seem to jump to an opposition reaction to everything. Even when you agree you are doing so in an oppositional way. Most of us welcome a healthy debate but it is also OK to agree and consider alternative ideas... its how we grow.
Back to the topic... I think we can agree that the country thrives when money changes hands. Unfortunately a very large percentage of that money flows to the top, so what is the best approach to even the scales? Higher taxes for the rich or Lower taxes via tax incentives to stimulate spending?
Economies don't thrive on theft, but production. Just to be clear here, you are talking about theft when you say "money changing hands". Now, economics tank every time there are major changes, hardly a good argument.
If you bothered doing any research, you would fine countries with more considerable savings rates do just fine - and generally speaking better. Who knew that if future consumption is preferred over current consumption (saving), the future is going to be prosperous? Wow... what a leap of logic. Economies don't grow on spending but saving. Spending is nice for short run aid at best, to bolster failed businesses.
Doubtful that paying more taxes incentivizes anyone to work. Penalize something and you get less of it. This applies to success.
Garbage ideas can be of course considered and then thrown to the garbage can where they belong. So far you were not even successful at formulating a proper argument. To be frank your argument sounded more than anything like "I like spending" "Therefore it's great! And rich better pay for it, cause I hate actually producing anything!".
