dw57

Confidence, Flubs and 8 More Thoughts

lets see. if we cut back on what consumers buy (since thats 70% of the economy)
that means that we have a possibility of 70% less GDP. and that also means we could have fewer businesses too. and i suspect it would impact all of them not just some. as how many business that sell to other business only, don't have at least one customer of a customer (till the end product appears) isn't sold to consumers? the only other real customer is the government. who depends on consumers to pay taxes. so in reality there is only one. now i hear all sorts of folks who say just don't do any thing. which i think we tried before September of last year. see how well that worked out for you? it also like the driver who sees a car in front of them pull out, and decides they won';t use that brake or try and steer around them, lets just plow right on into them after its their fault we are going to have this wreck. i am sure you can see how that works out. we also tried to give tax cuts using the instant rebate system. and we saw how well that worked out for us. I suspect the best that any of the decisions made so far are only going to give us a little bit of a cushion. instead of falling off a cliff.
and no body ever really has addressed the real problem. the one that has been growing for more than 20 years. and its not taxes.

its the collapse of wages. had wages just kept up with wages, consumers might not have had to easy credit to keep up the US standard of living.

but that is not going to be fixed now!

it will only get worse until some body really does address it though.