Does Obamas economic plan hinge on rebuilding Americas “consumer society”?
I think that mainstream economists believe that consumption must stay high in order to generate the demand necessary to promote industry. Obama obviously is listening to these economists calling for a “consumer society”. Mainstream economists sometimes equate saving with hoarding. There is little commentary about how saving funds investment. If Obama does try to stimulate spending, it will involve inflating the dollar. If people refuse to spend, then the rate of inflation could go beyond control. In essence, the dollars in circulation would not represent the market preferences of society. If things got bad enough, the dollar could be destroyed. On the other hand, even if Obama’s plans succeed, we could still be in trouble. If the level of saving stays artificially low, consumption could be unsustainable. At its base, the economy is made up of real stuff. Money is only good if there is something for which to exchange it. If saving dries up investment, we could fund our spending by consu
Liberals will spend money. The look forward to taking classes & eating out at different restaurants & traveling & decorating & buying things from each other. I have a handyman business & I can go paint a deck & charge $330 & a liberal will give me $400. I don’t know enough about the economic plan that Obama has & if people didn’t spend what would happen. It is healthy to spend money. The more we give out the more we can recieve. It is natural. We don’t hold our breathe. Why would we allow our money to stagnant. It is life energy. If I invited you over for dinner would you expect me to fix you a hotdog on bread? No, way. I am going to find your favorite meal & make my house look fabulous & buy a new outfit & if we are celebrating maybe a cake & a gift. I live in a conservative county & it is depressing. I drive to the liberal counties to work & it is booming. We all love to have the best. We are creators & we are supposed to reproduce. Not just die. So we give of ourself. We can’t give
People will always need places to live, and many want to own them; many will always want cars, in most places. EASY loans? I doubt Obama’s plans will include that. That was part of the problem. “Consumer society” doesn’t necessarily imply “everyone in debt up to their ears.” I see no reason the think people will stop buying stuff. The person who said consumption is irrelevant, and only production matters is being silly. If no one consumed, then producers can’t sell, and would get no profit. Obviously, an economy needs both. According to all the most recent stats, compared with previous stats, the housing market IS stabilizing. Most lending is not to consumers, but to businesses; that’s not going to change, and, surprisingly is not a bad thing.
