| Economic Stimulus for US economy
Posted: 7/1/2008 9:23:00 AM | I was dabbling around looking at profit/loss statements, and I was impressed by how many big corporations (retailers, mostly) make so much of their annual profits in the fourth quarter, due to Christmas sales.
It seems to me we in North America need another big gift-giving holiday in the middle of the year, something with universal appeal, to stimulate consumer spending and to get the economy moving again.
For the US, that would be toward the end of June, beginning of July...
July 4th comes to mind.
Stimulate the economy, show your patriotism, buy your loved ones something nice for the 4th...
Can't wait to see who gets offended/insulted/outraged by this one. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 9:39:05 AM | Why not simply try buying American made goods, rather than cheap-jack Chinese Walmart stuff?
Perhaps force all big-box stores to devote a third of shelf space to American made products.
Revoke tax cuts and breaks to companies that "outsource" jobs overseas.
There are some easy ideas that could be impliments without adding another "holiday" to the roster. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 10:56:17 AM | | Make a law that all incoming chinese stuff be painted red. Get some pop star to say that "red" is cheap, and no more economical problems. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 11:35:53 AM | I would have to disagree, I think it would just cause a different set of problems. Since corporations are always looking to produce their products at a lower price in order to maximize profit. If you place higher costs to these products, the corporations are just going to find another place to produce their goods.
This is one thing that makes me think at times. We all want have the cheapest prices possible. Though in order to do this companies need to find cheaper alternatives to produce and manufacture these goods. This is where we go overseas for the labour and such. Domestic labour cost are going to be higher because of labour laws, ethics, living standards.
In these times, I would think people are wanting more value for their dollar than anything else. This would mean buying cheaper goods. Either you need to cut cost in domestic cost in product cost since I highly doubt corporations really would want to cut their profits (what incentive would there be by taking less money than what they would before) or you place tariffs on foreign goods which in turn would make items more expensive which doesn't help anyone out. Also by placing tariffs on foreign goods you tend to have the same happen to goods being exported to other countries as they don't appreciate having their goods being taxed and the stuff coming in from said country is not and enjoying the profits from it. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 11:37:22 AM | I do try to buy quality stuff, but where do you find American-made cameras and electronics? There is no domestic camera industry, and the domestic electronics industry is barely hanging on. "American" cars? Some Hondas and Toyotas have more "domestic content" than Chevys, Fords, or Chryslers.
I do buy furniture made in South Carolina.
I don't know you would "force" retailers to stock their shelves with any specific products; we have a "free market" economy. Maybe if consumers were willing to pay a lot more for US-made goods, but- nah.
I'd suggest doing away with tax breaks altogether- adopt the FairTax and do away with income tax.
Anyway, I like holidays. Especially paid ones where I get cool gifts.
And giving nice things to family and friends is cool too. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 2:03:02 PM | I think the good furniture is from North Carolina but most of those jobs are now in China. The reason we've sunk so low so fast is because we already spend too much so another holiday made for shopping would only make things worse. The best economic stimulus would be a massive effort to get off of oil. There are tons of jobs in that field but our oil-man 'president' won't be the one to jumpstart it.
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| Economic Stimulus for US economy
Posted: 7/1/2008 2:55:24 PM | | Why not just pay down your bills with the check, try and get ahead on your house or car payment, or heck why not throw it in a high yield IRA so you have $700 to spend by Christmas instead of $600 to spend now. | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 3:37:48 PM |
Stimulate the economy, show your patriotism, buy your loved ones something nice for the 4th...
I'll start doing it when gases prices go down.... | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 7:41:56 PM | just renewed my costco card: $600 worth of tires is enough stimulus for me...
maybe a few t-bones, some beer and whatever else i can get on my a/e card before they get wise...    | |
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| Economic Stimulus for US economy
Posted: 7/1/2008 9:35:16 PM | | All that "American gluttony" fuels the largest economy in the world. Consumer spending increase generally leads a recovery. | |
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| Economic Stimulus for US economy
Posted: 7/2/2008 6:38:44 AM | I know this question is kind of off topic but I have a question to put to the people who actually know what they're talking about on this thread when it comes to the stimulus checks.
Being the Stimulus check was supposed to be an advance on next years tax return what happens to the people who claim enough so that they come out to be around zero difference for their taxes.
In my case the past two years I've gotten back $42 and paid in $281 respectively for federal. Does this mean that next year I'll have an added responsibility of that $600 dollars I received this month? Anyone know or am I just reading it wrong? | |
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| Economic Stimulus for US economy
Posted: 7/2/2008 8:04:53 PM | All that "American gluttony" fuels the largest economy in the world. Consumer spending increase generally leads a recovery
I would agree with this if the money being spent by consumers was actual cash in the bank. However, if the spending is done strictly on credit, it will not help the US for consumers to take on more debt. In other words, people have to have the money available ... along with stable jobs to back it up. Not everyone is a Warren Buffett. Additionally, if commodity prices are too high, average people will be reluctant to make that purchase or take that trip. Sky-high fuel prices may put a damper on summer travel this year ... think about that. Having a "Christmas" in July doesn't change the fact that layoffs are still happening, gas and food is expensive, prices of people's homes are falling, etc. With such a grim picture ... who would want to spend even if there was a big holiday in the summer?? | |
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| Economic Stimulus for US economy
Posted: 7/3/2008 12:42:47 PM | | I would agree if "actual cash" had any meaning, but the paper currency bills we use are called "Federal Reserve Notes," backed up by the ability of the US government to levy taxes and borrow money. They're promissory notes- in other words, credit chits. "Actual cash" is a myth. The economy, at every level, runs on credit. | |
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| Economic Stimulus for US economy
Posted: 7/3/2008 5:14:06 PM |
The economy, at every level, runs on credit.
Well, then like I said before why not use the money to pay off your bills. So that way when they go to borrow (tax) money from you, you don't have to borrow(apply for loan, default on your mortage, skip a school loan payment) from then. | |
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| Economic Stimulus for US economy
Posted: 7/4/2008 8:09:52 PM | I do understand the concept of backing up credit with the ability to repay debt.
I personally carry very little debt (one installment loan that will be paid off in 6 months), use debit cards for most purchases, otherwise I pay with "actual cash." Terrible habits, I know. I've never trusted lending institutions that offer "easy terms." Seems too much like loan sharking, and credit cards are pure usury.
However, one thing disturbs me- July 4th is a "make believe" holiday?
So, Santa Claus isn't "make believe?"
Where does the Easter Bunny fit in?
What about Halloween?
Super Bowl Sunday?
Thanksgiving?
Arbor Day? | |
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| Economic Stimulus for US economy
Posted: 7/4/2008 9:51:43 PM | ^^^^^All holidays are "make-belief" in some sense. It depends on how the holiday came about. But having a new one simply to get people to spend money isn't the way to fix the economy. They can spend all they want but if they can't make the payments ... what then?? Bankruptcies and foreclosures?? That'll really throw the nation into a tailspin ... fuel for the fire. People will naturally spend money on goods beyond the basic needs when they feel secure in their lives (and future). That comes from having a job they know won't disappear anytime soon.
Bottom line is: job creation and market sustainable prices for things like oil and food are the things that'll help the nation. Beyond a certain price point, people will no longer be able to buy a product. You can charge $400 for a barrel of oil but if no one can afford it, you won't sell any. That's called the law of "diminishing returns". | |
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| Economic Stimulus for US economy
Posted: 7/4/2008 10:17:24 PM | """...Beyond a certain price point, people will no longer be able to buy a product. You can charge $200 for a barrel of oil but if no one can afford it, you won't sell any. That's called the law of "diminishing returns"..."""
Actually it has next to nothing to do with the law of diminishing returns. More to do with price elasticity of demand and demand response pricing. It also has some connection with peak load pricing or Chamberlains model on price discrimination or also known as "charging what the market will bear....'
http://en.wikipedia.org/wiki/Law_of_diminishing_returns
OT:
Good idea in theory OP, but without thinking about it so hard to make my brain hurt, I'm thinking it could work. Superbowl Sunday probably impacts companies bottom line so maybe a new holiday would help. I knew of a sales organization that every time they had a big incentive week, the guys and gals went nuts and broke all kinds of sales records to win some prizes and awards and trophies and pins and stuff. Then the next week they'd do nothing and the production over the two weeks was now no more than an average week. So eventually the company came up with a way to plug a new incentive week into the calendar once a month. Same impact and same follow thru. Last i checked they were now up to two incentive weeks per month.
I don't know how much milk you can get from a cow, but it might work. | |
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| Economic Stimulus for US economy
Posted: 7/4/2008 10:32:55 PM |
You can charge $400 for a barrel of oil but if no one can afford it Actually, that's "supply and demand." Higher prices reduce demand. We're seeing that high fuel costs won't support sales of inefficient vehicles, but it hasn't discouraged people from demonstrating wasteful driving habits. Apparently we don't know how high demand can push the price of energy.
job creation and market sustainable prices for things like oil and food are the things that'll help the nation Sounds good.
Create what jobs?
How, more government spending?
"Prime the pump" of consumer spending with another round of "rebate checks?"
Pour government money into infrastructure repair, replacement, upgrades?
More tax breaks for the rich?
Tax breaks for corporations?
Raise taxes?
Value Added Tax?
FairTax?
Bail out failed businesses, like GM?
Force GM, Ford, and Chrysler to merge?
Take over GM's pension and health care obligations?
Universal, free health care insurance?
Seize control of oil companies, lynch oil industry executives?
Free student grants?
Abolish Social Security and Medicare?
Expand Social Security and Medicare to cover everybody?
Tax the poor, reward the rich?
Rob the rich, seize their assets, nationalize all businesses?
Print more money?
Stop printing money?
People will naturally spend money on goods beyond the basic needs when they feel secure in their lives (and future). That comes from having a job they know won't disappear anytime soon. My last "secure" job was 22 years ago. "Job security" is a myth. Your employer isn't going to care for you, the government won't either, we're on our own as far as having financial security.
Only consumer confidence, and consumer spending, is going to pull us out of the coming deep recession. Get ready for a really tough economy the next five years. | |
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| Economic Stimulus for US economy
Posted: 7/5/2008 4:20:30 PM | | Granted I've been out of the states for about two years now but from what I've heard/read, the US is about to go through one hell of a change economic standings. Gas will never go back to the way it was before, cost of living is on the rise and doesn't look like it's going to slow down anytime soon. I'm willing to bet things will get real bad before the get better. I think more needs to be done then just these little "stimulate the economy", but that's just me. | |
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| Economic Stimulus for US economy
Posted: 7/5/2008 9:43:39 PM | Kick every single right wing Republican out of office and replace them with true progressives who will bring our country back on track.
Outsourcing to ANY other nation should become a felony offense, to the level of being an act of treason. Any company's CEO who allows outsourcing should be thrown in the slammer for the rest of their days with no chance of parole. As soon as the "idea" started it should have been criminalized right off the bat! | |
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| Economic Stimulus for US economy
Posted: 7/5/2008 11:51:54 PM | Unfortunately outsourcing is just a factor of the free market system. If you look at the the Tesla Roaster the first maybe viable electric sports car, the car itself is made in several different areas. The frame from the UK, the motor from Taiwan, the battery originally from Thailand now produced in California, the brakes from German, put together in England, and sold in the US. Even though Tesla motors is an American company, all the labour and components are done elsewhere. The car itself is $100,000 but if you imagine that if an attempts was made to have it all made in the US, the car would be more than the $100,000 price tag it is selling for. Unfortunately, in order to bring prices to anything reasonable, you will need to go elsewhere to get a cheaper prices.
As I said before, if we raised tariffs on imports or "outlawed" outsourcing, what stops other countries from doing the same? Honda has a plant in Alabama and Ontario and for the most part a huge percentage of the car is made in the US compared to other vehicles. If we raise tariffs and labour on outsourced products, should we expect the same treatment from foreign companies? Also would it also discouraged them from buying the US product for their own countries?
I would hope something similar to the Roosevelt's New Deal would come about. Such as job creation on public works projects. But that would cause a further slide into debt. I keep on thinking of things such as govt incentives, job retraining (as North America could stray away from labour type jobs to perhaps new tech), or development of new industries. Though all of these would slide further into debt and I think that the US is too far into debt to be able to reap anything from it. I guess the alternative would be tax cuts to the general population to provide more money in the pockets to stimulate spending. Though on the other hand that would also mean less in the coffers of the government and which would lead to cuts in govt. programs.
Ugh.. glad I'm not a policy maker. | |
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| Economic Stimulus for US economy
Posted: 7/6/2008 12:48:45 AM | """...Ugh.. glad I'm not a policy maker..."""
Me too. Tough to figure out where to start. Especially when you factor in that the fed stopped letting the people know what the actual amount of money being printed out there is as of the spring of 06.
http://www.lewrockwell.com/paul/paul319.html
http://www.investopedia.com/terms/m/m3.asp
"""...But that would cause a further slide into debt..."""
Yes it would. Speaking of debt, anyone want to look at some scary pictures?
http://mwhodges.home.att.net/nat-debt/debt-nat.htm | |
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| Economic Stimulus for US economy
Posted: 7/6/2008 8:27:25 AM | I was dabbling around looking at profit/loss statements, and I was impressed by how many big corporations (retailers, mostly) make so much of their annual profits in the fourth quarter, due to Christmas sales.
Common knowledge. That's why they call the day after Thanksgiving (biggest shopping day of the year) Black Friday. It's when many many companies make the financial transition out of the red and into the black.
The problem with having a second big-gift holiday during the middle of the year is that I think people would spend less on Christmas to justify spending more during the "off" season. The profits would be split between the two holidays.
show your patriotism, buy your loved ones something nice for the 4th...
This is the type of mentality that I have a hard time understanding. People don't mind spending butt loads of unnecessary money on crap that they don't need in an attempt to stimulate the economy, but they want tax cuts. I can guarantee that $200 spent paying taxes will go much further in helping secure a more stable economy than spending $300 in a department store. | |
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Debt is still rising, savings is dwindling. Just where are people suppose to get the money to show their patriotism?? Can't spend what you don't have. We're still coming out of last years subprime mortgage crisis/credit crunch with banks writing off billions. High cost of jet fuel is forcing airlines to layoff staff, reduce services and (at the same time) charge more for what they're still offering. A person can't even "fly" the country into a recovery ... pun intended.
spending orgy, your idea of ecomomic stimulus will collapse ... as sure as night follows day. 
