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Politics : Formerly About Advanced Micro Devices

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To: Tenchusatsu who wrote (749737)	10/28/2013 12:22:12 AM
From: Bilow	Read Replies (1) of 1574108

Hi Tenchusatsu; Re: "Savings is key to increasing consumer confidence."; I doubt this is true. What makes consumers confident is the knowledge that they're still going to have a job next year. And the primary contributor to that is high demand for labor. And that we don't have. Nor is improving consumer confidence at all important in terms of improving the economy. Sure as the labor situation improves consumers will feel more confident but that's a consequence, not a cause. The average consumer spends almost all the money he makes. If he saves, it's a tiny fraction of his pay. He gets accolades for saving 5%. The rest is eaten up by monthly expenses. As a contrast, I used to save fully 50% of my pre tax income. Very few consumers can do that. When rich people act like I did (and I did this back in the tech boom when engineers were very well paid), that's what destroys the economy. The Fed is having to pump more and more money into the economy. That money is leaking out of the economy. That is, the money is still there, but it's been put in the hands of people who do not spend it. The Fed is having to continue QE because of a lack of confidence in rich people and corporations. That's where the money is building up. Consumers can't hang onto money, Microsoft and Bill Gates can. The depressed economy must continue until the rich and business classes feel confident. And the Democrats are not the type to make rich and business feel confident. As they always do, the Democrats worry about the symptoms not the cause of the problem, and so their solutions are ineffective. If the Democrats obtained permanent control over the economy they would destroy it complete just as the liberals have in so many other countries. Fortunately, the American economy is quite resilient still, and I think it will eventually turn around and survive Obama. At the same time, I believe that having the Republicans in power these last 5 years would probably have been worse (from the point of view of the economy, not from the point of view of freedom or health care). The Republicans talk about controlling government spending and stopping QE. These would be disasters that would bring on a real Communist government. -- Carl

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