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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Brumar89 who wrote (606312)4/3/2011 7:18:55 PM
From: i-node  Respond to of 1579000
 
>> ’cause that’s not, the reason businesses are not investing is they have tons and tons of excess capacity.

Krugman is right there is excess capacity, but why it that? The liberal economist viewpoint is because government hasn't spent enough on makework jobs to give the unemployed money in their pockets.

Rational economists understand that it is a problem with consumer confidence. What you have to do is to improve consumer confidence, which will cause manufacturers to begin building inventories again, which is what will put people to work.

I just don't understand how people believe that government can create meaningful work for people.