Comments on: Debt-Driven Consumption – It Won’t Be Stopped http://toughmoneylove.com/2009/06/15/debt-driven-consumption-big-engine-that-could/ The Hard Truth about Money and Personal Finance Fri, 19 Mar 2010 02:03:20 +0000 http://wordpress.org/?v=2.9 hourly 1 By: dwhite2762 http://toughmoneylove.com/2009/06/15/debt-driven-consumption-big-engine-that-could/comment-page-1/#comment-6935 dwhite2762 Fri, 18 Dec 2009 17:44:14 +0000 http://toughmoneylove.com/?p=3955#comment-6935 I agree, Ahead of the curve! I am so saddened by the number of people in my city that are out of work. I think that the relentless consumer spending was so bad for our planet and for our economy, but now regular workers are out of work (janitors, construction workers, mechanics). This is due to a siege mentality that any spending is bad. I agree, Ahead of the curve! I am so saddened by the number of people in my city that are out of work. I think that the relentless consumer spending was so bad for our planet and for our economy, but now regular workers are out of work (janitors, construction workers, mechanics). This is due to a siege mentality that any spending is bad.

]]> By: Ahead of the curve? http://toughmoneylove.com/2009/06/15/debt-driven-consumption-big-engine-that-could/comment-page-1/#comment-4770 Ahead of the curve? Tue, 16 Jun 2009 17:39:30 +0000 http://toughmoneylove.com/?p=3955#comment-4770 It's Keynesian economics, as you know. If the consumers and businesses won't spend, then the government needs to. It stops the "death spiral" of people saving and not spending, which leads to further cutbacks in business spending and more layoffs, which leads to more saving and less spending, and so forth. Overspending and overlending is not good, obviously, and got us into this mess, but stopping all spending and going into a Depression mentality will lead us further into this mess. There's a balancing act. The government and tax policy has always provided incentives which drive portions of the market. Now we have incentives to get people to buy houses (instead of sit on the sidelines and wait for prices to go lower, a vicious circle) or replace their gas guzzlers (instead of sit on the sidelines and watch the car companies wither and fall). A lot of people I know are not spending money, even though they have it, and are not in debt, because the "zeitgeist" is to not spend money and hoard cash. This is damaging to the economy and the President's economic team knows it. It’s Keynesian economics, as you know. If the consumers and businesses won’t spend, then the government needs to. It stops the “death spiral” of people saving and not spending, which leads to further cutbacks in business spending and more layoffs, which leads to more saving and less spending, and so forth. Overspending and overlending is not good, obviously, and got us into this mess, but stopping all spending and going into a Depression mentality will lead us further into this mess. There’s a balancing act. The government and tax policy has always provided incentives which drive portions of the market. Now we have incentives to get people to buy houses (instead of sit on the sidelines and wait for prices to go lower, a vicious circle) or replace their gas guzzlers (instead of sit on the sidelines and watch the car companies wither and fall). A lot of people I know are not spending money, even though they have it, and are not in debt, because the “zeitgeist” is to not spend money and hoard cash. This is damaging to the economy and the President’s economic team knows it.

]]> By: Mr. ToughMoneyLove http://toughmoneylove.com/2009/06/15/debt-driven-consumption-big-engine-that-could/comment-page-1/#comment-4763 Mr. ToughMoneyLove Tue, 16 Jun 2009 11:19:47 +0000 http://toughmoneylove.com/?p=3955#comment-4763 Rick - Absolutely the money is talking here, right through our beloved politicians. In that regard, did you read that Barney Frank persuaded GM to take three dealers in his district off the kill list? Rick – Absolutely the money is talking here, right through our beloved politicians. In that regard, did you read that Barney Frank persuaded GM to take three dealers in his district off the kill list?

]]> By: Rick Beagle http://toughmoneylove.com/2009/06/15/debt-driven-consumption-big-engine-that-could/comment-page-1/#comment-4750 Rick Beagle Mon, 15 Jun 2009 22:48:51 +0000 http://toughmoneylove.com/?p=3955#comment-4750 Keep digging... there are people who support these chairs that do not want substantive changes. Follow the money and follow the donations and you will find the impetus to a working government is old fashion greed. It is funny that a site dedicated to the pursuance of the mighty buck finds itself at odds with the "winner takes all" mentality that permeates our markets and have for at least a century. Personally, I am a huge fan of a free market with a big fat asterisk right after the term. I do not understand why money can not be made without irresponsible actions on the part of the consumer and the business owner? Irresponsible of course being defined by actions that are contrary to the laws of man, laws of nature (cut down a tree, plant a tree kind of thing), and the laws of common sense (does anyone think that rampant greed should have a place in our health care equation). Unfortunately, regardless of party affiliation, there is always someone willing to sell their votes to insure long term profits for their benefactors (or start and then prolong a war even). Peace. Rick Beagle Keep digging… there are people who support these chairs that do not want substantive changes. Follow the money and follow the donations and you will find the impetus to a working government is old fashion greed. It is funny that a site dedicated to the pursuance of the mighty buck finds itself at odds with the “winner takes all” mentality that permeates our markets and have for at least a century.

Personally, I am a huge fan of a free market with a big fat asterisk right after the term. I do not understand why money can not be made without irresponsible actions on the part of the consumer and the business owner? Irresponsible of course being defined by actions that are contrary to the laws of man, laws of nature (cut down a tree, plant a tree kind of thing), and the laws of common sense (does anyone think that rampant greed should have a place in our health care equation). Unfortunately, regardless of party affiliation, there is always someone willing to sell their votes to insure long term profits for their benefactors (or start and then prolong a war even).

Peace.
Rick Beagle

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