Quote:
Originally Posted by sortie
Simple :
Bail out consumers = They have no more debt and also no job since you didn't save their employers.
Bail out employers = People keep their jobs and pay their own debt.
Duh???
See the Business Bail Out is also a Consumer Bail Out because consumers get bailed out
of the fucking unemployment line.....get it?
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No, the businesses still end up going out after being bailed out because the consumers are still carrying too much debt. They still cannot afford to purchase product.
Unless the consumer can afford to purchase the downward spiral of the economy contimues.
from the essay (since you apparently did not read it):
Quote:
The middle class is the consumer class of the United States. If they are freed of their current debt they will spend money and will also start saving and investing money. It is very difficult to save money or participate in investments when you are also trying to pay down debt. If the middle class is freed from their current debt then it becomes much easier for them to start putting money away in savings and investments while continuing to use their purchasing power as they always have.
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The immediate effect on industry, the production part of the economic machine, is that consumers will continue to buy products. The factories and farms that produce the product, and the wholesalers and retailers that distribute the product, will be able to thrive into the foreseeable future.
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