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So it's a chicken an egg situation. If consumers aren't demanding it's probably because they don't have enough disposable income and if the ways of obtaining a
by motters 13y ago
So it's a chicken an egg situation. If consumers aren't demanding it's probably because they don't have enough disposable income and if the ways of obtaining an income are becoming scarcer then you have a positive feedback effect which depresses the economy. The economic question then becomes one of how to break that positive feedback.
- enraged_camel 13y agoTax breaks for the middle-class are a fantastic way of breaking that positive feedback. The problem is that they need to be sufficiently large to make a noticeable impact. The other alternative is government spending, a.k.a. stimulus. If we start working on improving our national infrastructure, those projects could result in a lot of jobs.