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Lack of Consumer Spending "Hurting the Economy"

Discussion in 'Society and Culture' started by Sierra Mike, Feb 19, 2015.

  1. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    I heard this on WCBS yesterday morning and meant to look into it further, but the upshot of the report is that government sources claim that reduced consumer spending is throttling back the economy. Here's the WSJ's take on it, from December.

    I understand the viewpoint, but not so very long ago, government economists were lamenting the fact that household debt was so high while average savings were so low as to be irrelevant. For the economy to rebound, it appears the free-money-spending government now wants consumers to divest themselves of their savings...again. Obviously corporations love that, but looking deeper this time, it seems that the federal and local governments are getting alarmed at loss of several tax revenue streams.

    Make up your minds, you dolts. Which is it? Spend our way into poverty, or save our way out of it?
  2. ethics

    ethics Pomp-Dumpster Staff Member

    Yep. You've hit it on the head. Wsj is pro Corp btw.
  3. Biker

    Biker Administrator Staff Member

    Well duh. It IS what makes the world go 'round. :lolaway-5:
  4. SixofNine

    SixofNine Jedi Sage Staff Member

    Not only does the U.S. government want consumers to drive growth again, the rest of the world does, too.

    (don't know if this link will work for non-subscribers)

    The unbalanced global economy: American shopper | The Economist

    Sierra Mike and ethics like this.
  5. Sierra Mike

    Sierra Mike The Dude Abides Staff Member

    Listen, I don't disagree with corporations trolling for profits. It's what they do. It's what they're for. Governments, communities, and organizations don't generate wealth--they merely harvest a great part of it through taxation and spend the money on whatever the local, organizational, or national needs are at the moment, in accordance with most-favored policies.

    Corporations, at the end of the day, are (or should be) all about making money.

    What irks me is that the government--especially this government--is complaining about consumer spending. After we get saddled with Obamacare and everything else on top of increasing tax rates, a growing deficit, and a trillion-plus dollar war tab we still need to deal with, the government seems to think that now is not the time to pinch pennies. I say they shouldn't be trying to take this fight to the average American--take it to George Soros, Sandy Weill, and Tom Steyer. Folks like that represent the Democratic Party's favorite tit, let the government suck on the them for a while and leave the rest of us alone.
  6. ethics

    ethics Pomp-Dumpster Staff Member

    Never said I was against corps. I've pointed out that when push comes to shove, WSJ will take Corps' side every time. Most of it is valid and in their defense they, like Bush, was calling on spending after 9.11.01 attack.

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