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Joined: 28 Dec 2005 Posts: 11966
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Posted: Wed Dec 24, 2014 12:22 pm Post subject: Creating Customers - Doug Short |
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PeakTrader:
Our politicians in Washington could’ve been more effective, and less counterproductive, getting the economy on track, and assisting the Federal Reserve.
Massive idle resources for this long is completely unnecessary.
Anyway, here are some charts:
http://www.advisorperspectives.com/dshort/
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It seems, there are people who confuse prices and wages.
Lower prices can clear the market and increase production.
However, when there are no customers, a business won’t spend on inventories, hire workers, and expand.
A large tax cut and an increase in government expenditures can create customers.
An example of increased government spending to clear the market (from my statement in early 2009):
Instead of loans for the auto industry, the government should buy autos and give them away to government employees (e.g. a fringe benefit). So, automakers can continue to produce, instead of shutting down their plants for a month. Auto producers should take advantage of lower costs for raw materials and energy, and generate a multiplier effect in related industries.
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