New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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From: Arthur Tang	4/19/2010 6:21:47 AM
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The US economy continue to grow because of productivity emphasis. Productivity is revenue divided by number of employees. Typically $100,000 per employee because people can spend money on efficient websites. Raking in money while your sleep so to speak. If you lose money, just tell your IT department to advertize to get more people on the website to spend money. If you lose money just ask IT department to reduce head count and bring productivity higher. This created a lot of cash flow(cash profit)l and many corporate executives are worried about income tax rate(currently at 37-40%). More efficiency will approach 50% tax rate and the government deficit will be reduced. So, the economic growth benefits our democracy, by increasing productivity(money making websites). But, all that cash flow has to be spent for new product development to stay ahead of competition. And new products make life easier for consumers(to loosen their purse string). Infrastructure spending is supply side economy. Consumer spedning is demand side economy, which is larger than supply side economy as population grows.

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