posted on Nov, 6 2009 @ 10:44 AM
I think one of the main flaws in our system is the fact that, when the economy is bad, companies feel the need to contract. By that I mean cut costs,
lay off employees, close down locations, decrease shipping, anything they can do to even out the losses and make a profit.
The problem is that it's counterproductive. If the economy is bad what we really need is more jobs where people will make more money, which they
will spend in the economy. Instead we have companies severing their own limbs to make it appear that they lost weight.
Just because companies are reporting profits doesn't mean the economy is getting better. Lets say a company makes a product and ships it all around
the country to multiple locations. Lets say the economy gets bad so they fire 90% of their workers, close down all but one manufacturing plant and
ship only to one location. The company may have just cut it's spending enough to seem like it's making a profit but in all reality the company is
in big trouble.
I agree that we should have let these "too large to fall" companies fall. Our system was designed for upward mobility and in order for that to
happen you have to let the dead die so the younger, more virile companies can take their place.
The reason why the economy is so bad right now is because of the lack of jobs and the lack of money going back into the economy. The lack of money
isn't a lack of spending, it's not that people aren't shopping as much as they used to, it's that they're not bringing home as much money as they
once did and they are afraid that their job is next.
During the Great Depression public works projects were started with the main intent of getting people jobs. They was because America understood that
money should start at the bottom and go up. It shouldn't be given to those at the top and then expected to trickle down to us common citizens.
The powers that be seem to think this can be fixed with good feelings and social engineering but you can't make even a brainwashed populace spend
money they don't have. When Bush told us all to go shopping to support the country, we did, but now we're broke.