Quote:
Originally Posted by Socks
I hear that, but what's the fear of not giving the stimulus? That it's going to affect corporate profits no? Sending stock markets down. They're not doing it to help the average person, so what's the idea behind it other than to keep share prices inflated to stop more job losses.
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One of the ideas is that these companies will use the money to expand and create jobs. I don't think that is the case. Many companies are making record profits and they are just sitting on them. They have no reason to create jobs when they are already making such huge profits and when they do expand they do it overseas where they can do it cheaper.
If the adminstration trully wants a stimulus plan that puts people to work they need to do one of three things:
1. make a new deal type of plan. Hire a bunch of people to fix bridges, roads, schools, infrastructure etc. It's not ideal and its not long term, but it puts people to work and those people will spend money which can help spark the economy. They might then later be able to fold these people into some kind of renewable energy jobs.
2. only give money to companies that will directly use it to hire people. Essentially the government pays for these worker's salary and benefits for a period of time so the company has much less risk in hiring new people.
3. Create some kind of a worker redevelopment program. There are many people who lost their jobs and those jobs no longer really exist. These people could go back to school and learn to do something new, but that is neither cheap nor easy especially if you have a family to support. So the government puts in place a program where they can get financial support to go to school and learn a new trade so when the are done they can get a good job in a career path that has a future.
None of these are great savior type ideas, but they would at least put money directly into the hands of people who would have jobs or they would get people ready to get a job that actually exists and pays a decent wage instead of it landing in the vaults of banks and companies that will do nothing with it.