Hum Dinger
Gold Member
- Aug 19, 2008
- 12,197
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I just don't get you, Ed.
You really want to keep perpetuating a consumer driven economy? Just because consumption is what is going to "kickstart" the economy, doesn't mean it's the right way to go.
We have an opportunity right now, to change the system back to production. If we sit back and wait for the Fed to pump dollars into our pockets so we'll spend them on CRAP, we're never going to get anywhere.
This is a time for us to reprogram ourselves, and re-learn what it means to PRODUCE, SAVE, and BUDGET.
I don't want a god damn shiny NICKEL of that new money. And I'm not sure how you could possible believe that it hitting the streets isn't going to cause inflation. And my statement about doubling the money supply was hypothetical, to put into perspective what would happen to prices and how it would affect potential wage increases. It's a useless process that needs to end.
"psychological inflation"? I don't think I've ever heard that one before. There's over 1 trillion dollars of brand spankin new money ready to start going to work. How is that "psychological"? It's REAL, and it's GOING to affect prices.
We don't have to pump currency into the economy, thereby causing massive inflation, to create a healthy consumer economy. We need to cut the profits and salaries (and other compensation) of the wealthiest 10% and give that money to the workers. We also need to put a stop to off-shore secret bank accounts and make everyone account for the money that's in them.
This whole economic crisis has been caused by supply-side run amuck. The entire supply side theory is completely false. Giving a greater share of the wealth to the wealthy DOES NOT cause them to invest and get the economy growing. In fact it creates an environment were the wealthy can afford NOT TO TAKE RISKS. It takes LESS investment to provide acceptable profit in a supply side environment. So supply side winds up being the opposite of what it's supposed to be.
IF THERE IS A MARKET THEY WILL INVEST!
In healthy consumer based economy investors will always get the capital for investment if there is a promising market. If there is a lower percentage of profit per dollar invested, they wil have to invest more dollars in order to maintain an acceptable total profit - and they sure bitch and moan about it. This means ever increasing growth. A moderate amount of inflation also helps as a penalty for hording money.
Right now, too many years of supply-side has created a situation were the wealthiest people have NO INCENTIVE TO INVEST. They're made for a thousand lifetimes and then some. They're divesting and hording their money.