Applications for jobless benefits are at their lowest in 14 years. Economy is growing at 3.5%. Normally, present conditions would lead to an economic surge. But Americans have lost their confidence in the future (I’m not saying there aren’t reasons for that) and don’t want to invest in it, or take chances. That’s why the people who have all the money are hanging onto it, instead of investing it in American enterprises. Why expand your business when there aren’t enough customers as it is? Ah, but there won’t be enough customers unless business expands! One person’s spending is another person’s income. Money is like blood: it has to circulate to do any good. Saving is good for the future of the individual, but spending is good for the present and future of the economy. And it doesn’t matter much who is doing the spending, especially when it comes to spending on things that have long-term benefits: factories and houses, roads and bridges, say, instead of beer and cigarettes, candy and sodapop. I.e. spending as investment rather than as consumption. Private spending is better than government spending in a general sort of way (the conservatives are right, there) but government spending is way better than no spending at all (a simple fact that conservatives go to great lengths to deny). And sometimes spending money you don’t have is better than saving it up until you can “afford it.” Sounds crazy? Well how many of us would own houses or go to college if we waited until we had saved up enough to pay for it without borrowing anything?
Applications for jobless benefits are at their lowest in 14 years. Economy is growing at 3.5%. Normally, present conditions would lead to an economic surge. But Americans have lost their confidence in the future (I’m not saying there aren’t reasons for that) and don’t want to invest in it, or take chances. That’s why the people who have all the money are hanging onto it, instead of investing it in American enterprises. Why expand your business when there aren’t enough customers as it is? Ah, but there won’t be enough customers unless business expands! One person’s spending is another person’s income. Money is like blood: it has to circulate to do any good. Saving is good for the future of the individual, but spending is good for the present and future of the economy. And it doesn’t matter much who is doing the spending, especially when it comes to spending on things that have long-term benefits: factories and houses, roads and bridges, say, instead of beer and cigarettes, candy and sodapop. I.e. spending as investment rather than as consumption. Private spending is better than government spending in a general sort of way (the conservatives are right, there) but government spending is way better than no spending at all (a simple fact that conservatives go to great lengths to deny). And sometimes spending money you don’t have is better than saving it up until you can “afford it.” Sounds crazy? Well how many of us would own houses or go to college if we waited until we had saved up enough to pay for it without borrowing anything?