Elwood Blues

What's Best for the Economy: Monetary Policy, Government Spending or Tax Cuts?

prudentinvestor, I agree with your analogy and would take it a step further... for years the gov's watched kids running around breaking windows and then papa Greenspan wakes up from a long nap and says he can't believe his beautiful children would throw all those precious brics.

So now we're left trying to figure out what to do about all the broken windows. If I'm worried I may not have a job tomorrow, I may not opt to repair a broken window in my house, even with a government incentive. So short term demand could be limited. The gov, unlike me, has less concern about losing a job tomorrow, could opt to invest now for new windows in their buildings... with the hope that 4 yrs from now, those new windows will be saving on heating bills and creating some big demands at the glass factory where I work. Maybe even result in development of a new glass that people in Bric-land like and buy. And now that orders are looking good at the glass factory, it's about time I got some new windows, and we all live happily ever after. The moral of the story probably involves people in glass houses..