|"Employment won't turn around for 3 years."
||[Sep. 20th, 2009|09:10 am]
Just as soon as house prices reach their previous level, and people pay off all their credit card bills, and they get a raise to negate the reason they had big credit card bills in the first place (which remember was caused because wages stagnated).|
Then all the businesses need to do is NOT scoop off all the profits for themselves (you know - the shareholders?), and invest it into the business and their employees wages.
Then those same employees can start spending loads and inject all that money back into the economy.
3 years? Hmmmm.....
More like 10, if ever!
In a service/consumer driven economy, companies need to give workers lots of money so they can spend - in effect investing back in those same companies.
If you go and scoop all the profits... where do the workers get money from to spend!?
It looks like it was Credit Cards.
Now they're maxed out - we're back to the same problem - where is the money coming from for people to spend?
It can't be this simple can it? Can someone who knows lots about the economy explain to me how it will work out?
[source of my thoughts] : http://itcouldhappenhere.com/blog/wsjiswrong/
If the poor working class (like me!) can't get the economy going who can?
Well the upper class might:
If they do though, we'll be stuck with stagnant wages for a long, long time...