The problem the US faces, is the same as France, UK, Italy, Greece, Portugal, Eire and probably a few more face.
It's simple. Lower manufacturing and export have led to fewer jobs in those sectors. Some were soaked up in the Services Industries, Financial Industries and Government spending. To keep money circulating in as many hands as possible.
PLUS huge borrowing.
The Bank collapse showed the cracks, the deregulation of the banks made the cracks wider. Then many of the jobs created were lost.
Now we have people blaming the victims of faulty system. Yes there are some crack sellers who will always be a problem. Does that include the people put out of a job over the last 4 years?
Spain: 25.1% Cutting spending.
Portugal: 15.9% Cutting spending.
Ireland: 15% Cutting spending.
Italy: 10.7% Cutting spending.
France: 10.6% Cutting spending.
UK 8.1% Cutting spending.
Germany: 5.5%
Eurozone: 11.4% Cutting spending.
US: 8.1%
Japan: 4.1%
Now some Americans to get your vote are telling you they will cut the spending, lower taxes and this will boost spending and lead to recovery.
If anyone thinks switching money from Jim to John, boosts spending. They need to tell us how.
This problem is so much harder to solve than that. THE WEST, did you get that Robbie?, either accepts a lower standard of living or it gets some of the money flowing into the emerging economies back. Cutting spending will send more of that money to the emerging economies.
Minte said his largest contract was from Vietnam, does anyone wonder how Vietnam is now able to spend that kind of money and why it's not being spent by a US company or the Government?
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Taxing those that work more, in order to support those that don't work, is one possible solution to the problem, but I don't agree it's the best one. System like that tends to REWARD the lazy / unsuccessful / etc.
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Now the victims are lazy, unsuccessful and because they lost their jobs their support is now a reward.
Great pig in a trough mentality.
So we cut the money to the unemployed, they go out and try to find a job that doesn't exist. Then what, maybe they come knocking on your door.
Then what about all the people organising the payouts, shall we sack them as well to keep your taxes low?
What about all the shops where the unemployed shop, besides the meth and crack shops, do we shut them and sack the workers as well?
Then what about the places, the now unemployed office and shop workers, spend their money, do we close them as well? Some of them might be your customers, did you figure that in as well? Because a guy spending $30-$50 a month isn't much better off than the people you're turning into lazy, unsuccessful people who expect to be rewarded for the job they lost.
Money never stops circulating, until it leaves the country.
Tell us guys what will you spend your $500 a year windfall on? Beside a big ass gun to keep the lazy, unsuccessful people from your door. Maybe a Nokia phone.