Somebody FREAKIN shoot me!!!!

[WSSix]

Originally Posted by realcoray

If you give me a tax cut, there certainly is a chance that I'd spend it, but there's a near equal chance that I'll do something that has 0 economic affect like putting it into my savings account.

That comment right there shows your lack of understanding of how the economy in this country works. Putting money into a savings account is not letting it sit idle. It has a huge affect on the economy. There is not a vault in a bank with your cash in it just waiting for you to come take it out. It's being used for investments and loans. It is generating wealth for people.

You should read more on Austrian Economic principles, mises.org is a good start, and read more on Hayeck. It will better explain how and why capitalism works with history and facts unlike those extremely intelligent and perfect academic theories that just never seem to work for some reason proposed by Keynsians. That last part is me being sarcastic again. Sorry, but I am not going to listen or follow anyone's theories when one of them is that it would help the economy if the government buried money and then paid someone to dig it up. That's stupid. That's Keynes for you.

We need Andrew in this thread.

[realcoray]

Originally Posted by WSSix

That comment right there shows your lack of understanding of how the economy in this country works. Putting money into a savings account is not letting it sit idle. It has a huge affect on the economy. There is not a vault in a bank with your cash in it just waiting for you to come take it out. It's being used for investments and loans. It is generating wealth for people.

Certainly. Outside of burying money in my yard, anything I do with it benefits the economy to some degree.

Take a step back though from questioning my intelligence and consider what was going on in 2008. Consumers, aka people buying things, slowed down buying things. Rich consumers, poor consumers, everyone was freaked out and started saving more and spending less.

My company saw it, our customers are not poor people, they are businesses and they stopped spending money. I presume they were saving money where they could but the reality of them not spending money is that other businesses slowed, and had to slow their spending or start to lay people off

Consumer spending dropped, and the saving rate skyrocketed, and yet the economy kept falling. You could argue that banks weren't lending that extra money being saved and that is certainly true, but at my company business dropped and people don't take out loans to buy our products, so the banks had zero impact in terms of us having a bad year.

Any honest person with a business saw demand drop, and many businesses closed as a result. Certainly some places got jammed up because some banks didn't loan, and their customers used loans to buy their products, but in general? It was because everyone started saving money.