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Politics : Clinton's Scandals: Is this corruption the worst ever?
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To: Neocon who wrote (12436)5/13/1999 6:23:00 AM
From: PiMac  Read Replies (1) of 13994
 
Nerocn, here is my basic economic proposition.
A consumer economy beats all others for continued prosperity. Right now the figure is ? 75% consumer servicing, 25% investment servicing.
The economic impacts that matter are two. All microeconomic factors are so minor that bad policy with them can be absorbed a long time. The two macro forces are Trauma and Taxes.

Taxes are needed to recycle investment money that would naturally become available to successful business. Money rises. Taxes recycle, redistribute, bring the money down, to keep the money with the Consumer in the Consumer Economy. Other ways exist to bring it down, charity,..., but do not do so enough or consistently. The Government spending money on the Military is one of the worst consumer purchases, but limited, it works too.

The other Macro Economic Force is Trauma. War is typical, Natural Resource failure [like oil embargo or 30's Dust Bowl], Revolution or internal strife [the 60's], .... Anything that makes business unwilling or unable to do long-term business. With Stability [not trauma] business in a consumer economy will naturally put out the output we've seen lately.

This is my own concoction.
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