Originally posted by student777
I am not crazy about greedy corporations, and would prefer ma and pop shops, but as long as they hold the jobs you have to give them incentives to
hire.
This is the confusion that is killing our country.
Corporations are "incentivized" to hire when there is consumer demand for thier products.
Not when they are given more money. Give a corporation more money durring a recession and they will horde it, not hire. Who can blame them?
Companies don't hire more folks just because they have money in the bank. They hire more folks when their products are selling and they need to
expand! And if they don't have money to expand when their prodducts are selling, banks sure as hell will lend it to them...as long as their is
DEMAND.
Demand...Demand..Demand...that is what drives companies to grow and hire. That is what drives banks to lend.
We already tried bailouts. That money is sitting in accounts. Why? Because the economy sucks.
Why has consumer demand dried up? Because the consumer has run out of money. They can't borrow on thier homes anymore, credit cards etc. Kaput...blood
from a stone.
Without consumer demand for products, all the tax breaks in the world won't convince companies to expand and hire just for the fun of it.
The question we need to ask is how do we fix the middle class so they have money to spend again? Not through credit...we gave the banks Trillions in
taxpayer money...they pocketed it, didn't lend it out. Why? Because neither the consumer nor the corporations look like a safe bet. All because the
middle class...the consumer class... is on it's deathbed.
We need to fix the middle class to get this economy moving again. Hiring follows demand, which is driven by the middle class...which is out of money
and credit.
That is why if the Government can create jobs by taxing the welathiest and spending that money to employ the middle class...(Infra-structure,
innovation grants, renewable energy) and the middle class spends that paycheck on consumer products and services...and the companies expand and hire
to meet that growing demand...we might just have a chance at restarting the engine.
Otherwise the income disparity in this country has reached it's peak. All the wealth has moved to the uppermost brackets and it is staying there. No
more money and credit for the middle class...no more spending...no more consumer demand...no more hiring to meet that demand and we quickly decline
and can call ourselves a third-world nation, an oligarchy...whatever term you like. There will be the wealthiest 2% and there will be the impovershed
masses that work for them.
edit on 6-10-2011 by Indigo5 because: (no reason given)
edit on 6-10-2011 by Indigo5 because: (no reason given)