Dec
8
How can we jump start the economy?
Filed Under Economics
Tye W asked:
I think instead of bailing out wall street, that 700 Billion could be divided among all register voters($75 to 100K per person) with a guide line that you have to put at least half the money back into the economy and then people will be able to keep their homes and stimulate the economy by going out and spending instead of wall street getting richer. As for the Automobile bail-out, if they lower the cost of their vehicles then maybe someone would be willing to buy a new car or truck in this economy.
Ian
I think instead of bailing out wall street, that 700 Billion could be divided among all register voters($75 to 100K per person) with a guide line that you have to put at least half the money back into the economy and then people will be able to keep their homes and stimulate the economy by going out and spending instead of wall street getting richer. As for the Automobile bail-out, if they lower the cost of their vehicles then maybe someone would be willing to buy a new car or truck in this economy.
Ian
Comments
2 Responses to “How can we jump start the economy?”
Timothy
You said “a guide line that you have to put at least half the money back into the economy,” I believe that the real problem with you solution is not have people holding the money, it letting the people buy imported goods and not domestic good.
The reason why is this; if a person doesn’t spend the money on domestic goods and on imported goods, we would not be stimulating our economy, second even if the money gets deposited in a bank and not spent, or used to pay off debit the money will help “free up” some credit and help unfreeze the credit market, three If you disperse this money to quickly then inflation will start to rise when we need prices to go down.
Daniel
Jump starting the economy can work only when people and businesses have a lot of money to spend, but for one reason or another they are reluctant to spend.
The government can’t keep borrowing from foreigners and giving the money to the people to spend indefinitely. Which means that any handouts to people who don’t have much money will only increase their spending and consumption for a short period of time. And if they don’t have any additional money to spend. Then these people have no choice but to cut back on their spending when the handout money runs out.
Jump starting a car works only when there is fuel in the tank. And jump starting the economy works only where there is a lot of savings in the economy that can be spent.
A lot of people have a lot of debt and not too much money. That’s the main problem with the economy now. And the government is in no position to pay off everyone’s debts.