Schneibster
06-10-2011, 05:42 PM
and that means we need more consumers.
Corporations are hoarding their wealth because a) they can and b) there's not enough demand to justify hiring more people to satisfy it. It's a vicious cycle. You can read this here ([Only registered and activated users can see links]), in an article by Robert Reich. To understand Reich's argument another way, the velocity of money has fallen because not enough people are spending. We therefore need to create more people with spendable income. This will increase the amount of money being spent, and increase the velocity of money. The Great Recession will then be over. This can happen both by increasing the income of people who already have jobs, and by getting jobs for people who don't currently have them. More stimulus to corporations is useless; what we need now is something for the corporations to do.
Corporations are hoarding their wealth because a) they can and b) there's not enough demand to justify hiring more people to satisfy it. It's a vicious cycle. You can read this here ([Only registered and activated users can see links]), in an article by Robert Reich. To understand Reich's argument another way, the velocity of money has fallen because not enough people are spending. We therefore need to create more people with spendable income. This will increase the amount of money being spent, and increase the velocity of money. The Great Recession will then be over. This can happen both by increasing the income of people who already have jobs, and by getting jobs for people who don't currently have them. More stimulus to corporations is useless; what we need now is something for the corporations to do.