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

To: i-node who wrote (735903)	8/29/2013 11:27:59 PM
From: puborectalis	Read Replies (3) \| Respond to of 1578071

consumption drives the economy....give very poor people subsistence and they will spend it on shelter,food and clothes recycling that money back into circulation.....rich people would save the money,possibly overseas where it does no good.

To: i-node who wrote (735903)	8/30/2013 12:27:33 PM
From: combjelly	Respond to of 1578071

If your thesis was correct, the supposed increase in social welfare should result in falling productivity. That hasn't happened. Besides the amount of money is only a small percentage of the budget. cbpp.org Granted, investments can improve productivity. But, without an increase in consumer spending by consumers having more money as a result of the productivity, it can only increase unemployment and under-employment. Consumers can't spend what they don't have. The only exceptions are if consumers go deeper in debt or we export more. We saw where the former leads. And the latter isn't happening any time soon. The only confusion I see is from you. The economy is not driven by unicorns and fairy dust. Improved productivity without some of the results going back to consumers cannot cause the economy grow unless that economy is driven by exports. And ours is not. I know, I know. This just makes too much sense for a wingnut like yourself to understand.