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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (252821)	1/2/2008 10:27:59 AM
From: Katelew	Read Replies (2) \| Respond to of 281500

Hi Michael!! I would add to your post to Peter by saying that the economy is different now.......smaller industrial driven and larger consumer driven. If memory serves, I think about 70% of the economy is consumer spending. So raising wages increases consumer spending which increases revenues to business, etc. etc. It could be more or less a wash instead of leading to consumer led recessions, which is the most likely type of recession now given our economic structure. So the point I'm trying to make is why would raising wages lead to a consumer led recession when it puts more money in the hands of consumers? Peter also would like to see social security scrapped!!! Now that would lead to the mother of all recessions, wouldn't it? Not to mention a 40 year housing glut as grandparents everywhere sell their homes and move in on their kids <g>.