Of course if everyone saves that is called a Great Depression.
When Democrats daily pull this ‘Welfare to the poor creates demand creates jobs ‘ crap they always cite employers that say that lack of consumer demand is what keeps them from hiring, not taxes or regulation but lack of demand.
Lets for the sake of argument say that was true. Do we really have to raise taxes to get the money to bribe consumers to create demand?? What if the producers could lower their prices ? Wouldnt that create more demand just as well or even better? What could the government do to help producers lower prices? How about cutting regulations and taxes.
I never see Republicans counter Democrats with any real arguments, they just respond “Duh, low taxes on the rich help everyone even you”(which I think they hear on AM radio) and wonder why the polls say the opposite.
“Of course if everyone saves that is called a Great Depression”
No, not really. I believe you’ll find the depression resulted from a frenzy of spending, in the form of malinvestment. A period of austerity after such prodigality is edifying, despite what demand-crazed Keynesians tell you. The only reason it lasted so long is because the wastefulness was followed by a crowding out of private investment in the form of government spending, and recovery was stalled by regime uncertainty caused by rabid yet random regulation. If you want to call that “saving,” go ahead, but it is an abuse of language.
“Do we really have to raise taxes to get the money to bribe consumers to create demand??”
I’d say that’s precisely the opposite of what we should do. Cut taxes, more appropriately. Government spending only crowds out private investment, as I mentioned above. And, surprise of surprises, government spending isn’t as smart. Plus, again, all stimulating demand would do is keep the economy on life support. It wouldn’t grow anything, which only happens through capital investment, i.e. saving.
“they just respond ‘Duh, low taxes on the rich help everyone even you’(which I think they hear on AM radio)”
That may not be the best way to put it—and actually isn’t very fair to how it’s put even on the radio—but it has the advantage on Keynesians of being true. How would you get the message out? How best to tell people jobs are not created by welfare? Maybe we should airdrop copies of “The Forgotten Man.”