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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (1768)	5/23/2003 4:20:26 PM
From: GraceZ	Read Replies (1) \| Respond to of 4912

You are essentially claiming one group does the "right" thing with their money and the other doesn't, or at least one group does 'better' things with their money. It appears to be social engineering. No I'm not, you are the one suggesting by saying we should give the break to those that need it. Need has nothing to do with it. If you want to grow the economy you have to reduce the disincentive to invest not encourage consumption. You NEVER have to try to boost consumption its a natural outcome of people feeling richer and I can't think of a better way to feel rich than to have a job. OTOH there is plenty of evidence that increased spending directed towards consumption simply raises prices of those goods and services, that it adds to price inflation taking away whatever benefit the added money gave in the first place. You look at some well publicized examples of wasted investment dollars and think that its a waste to leave that money in that area. Let's talk about the huge sum of money shipped from any major metro area to South America for drugs, or to gambling and alcohol. One can always find examples of groups of people in any income group who handle their money poorly individually and in aggregate. I heard the same arguments about investments going off shore back in 1983, that we were shipping jobs off shore. We were in the 70s, because there was no way that we could compete in a lot of industries with such high labor costs. So what happened in the 1980s after all those jobs went off shore? The American consumer didn't wake up one day and say they needed a personal computer because someone gave them a few extra dollars. That industry was created BEFORE there was any demand for it. It was created with somebody's risk capital. That one industry fueled the tremendous growth in this country for two decades. This industry didn't come from the lower 20% having a few more dollars....but the lower 20% sure managed to benefit from the economic growth. I know because I came from that lower 20%.