Garb Posted January 11, 2009 Share Posted January 11, 2009 Reading the Boston Globe this morning. Doom and gloom, and a ray of hope, on the economic front. We could head into an actual depression, a period of anemic growth or a recovery. Allegedly the recovery hinges on the swift passing of Obama's proposed 800 billion plus stimulus package: Tax cuts are directed towards those most likely to spend, namely lower income families and benefits are either extended or increased for the unemployed - both these groups allegedly most likely to spend money quickly. With this spending providing an initial lift, hundreds of billions of dollars goes to states to avoid budget cuts and layoffs, pay for public works projects and creates jobs. Most importantly, a swift, bold move by the new president and congress will boost consumer confidence. Improved confidence combined with historically low interest rates will revive private spending when potential home buyers, less anxious about their jobs, start taking advantage of the deals available in the housing market. A robound in the housing market will help financial and credit markets rebound. Firms will get loans for capital purchases. Jobs will be created. Etc. Just sounds too easy. So a recovery hinges on low-income familes spending money on essentials? And, what exactly is low income these days? Link to comment Share on other sites More sharing options...
Blackout Posted January 11, 2009 Share Posted January 11, 2009 this wreaks of a future political thread Link to comment Share on other sites More sharing options...
Larz Posted January 11, 2009 Share Posted January 11, 2009 I'm no economist, but I think the biggest problem right now is fear and a lack of confidence to spend money, which has a terrible ripple effect on the economy, so I agree on one front, but the federal tax breaks and stimulus may take years to have an effect from what I am reading sometimes I think we should just take the pain now and get it over with rather than borrowing money from china to send to everyone as long as the focus is job creation, I'm for it but it's better than the voodoo economics of giving tax breaks to the wealthy and hoping it trickles down Link to comment Share on other sites More sharing options...
Thai Jet Posted January 11, 2009 Share Posted January 11, 2009 I'm no economist, but I think the biggest problem right now is fear and a lack of confidence to spend money, which has a terrible ripple effect on the economy, so I agree on one front, but the federal tax breaks and stimulus may take years to have an effect from what I am reading sometimes I think we should just take the pain now and get it over with rather than borrowing money from china to send to everyone as long as the focus is job creation, I'm for it but it's better than the voodoo economics of giving tax breaks to the wealthy and hoping it trickles down You're right fear IS gripping the economy. And who can blame the people ? That's all you hear on the news ...plant closings, layoffs, doom, gloom. Do you ever hear of company's hiring or expanding? Of course not. Yey they are. Good news doesn't sell. Link to comment Share on other sites More sharing options...
JonEJet Posted January 11, 2009 Share Posted January 11, 2009 Business can't get loans I have recently tried...and i have a++ credit, and have business relations with my bank Simply told, there is no $$$$$ for small business today Had to fund my new store with my own resources If there is no $$$$$ for small business, a 2nd great depression is in the near future Link to comment Share on other sites More sharing options...
afosomf Posted January 11, 2009 Share Posted January 11, 2009 Business can't get loans I have recently tried...and i have a++ credit, and have business relations with my bank Simply told, there is no $$$$$ for small business today Had to fund my new store with my own resources If there is no $$$$$ for small business, a 2nd great depression is in the near future They won't fund a liquor store... Hello booze in a depression is a winning combo...oh my Link to comment Share on other sites More sharing options...
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