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Why is economy stalling considered so bad? Would it be so much better if they just spent everything? Why is more production, consumption and pollution conside
by DuncanIdaho 16y ago
Why is economy stalling considered so bad?
Would it be so much better if they just spent everything?
Why is more production, consumption and pollution considered good?
Can't you see that taking wealth of Warren Buffet and distributing it amongst the poorest would cause mostly problems. These people wouldn't use the resources to empower themseves or improve their position - they would mostly blow it for hedonistic pleasures.
- samd 16y agoThere is nothing inherently wrong with consumption. Any strong economy must have a balance of consumption and savings (investment). Without consumption there is no income for businesses, and without investment there is no growth of businesses. Depending on the economic situation it can be beneficial for the government/Fed to either encourage increased consumption or investment. Giving poor people money is an excellent way to increase consumption because poor people tend to spend most of their income rather than save. In our current economic situation, with consumers cutting spending and thus causing businesses to cut production and jobs, giving away money to poor people would help to increase consumption and thus put people back to work. This is why government's around the world passed stimulus packages in the wake of the financial crisis. So don't demonize people for spending money, it's an essential part of our economy.