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We are currently in a deflationary period meaning prices are actually dropping and still people are spending less sir.... this isn't simplesupply and demand. Never said nothing was wrong with paying off debt i was stating people don't have the money to invest because their saving more and alsotrying to pay off outstanding debt so no matter how low the government lowers capital gain rate it won't do much for investmentOriginally Posted by CuriousGeorg3
Originally Posted by NostrandAve68
Here's the Republican's solution to solving the economic crisis
Don't do anything let the market fix themselves - so even though people don't have money to invest because they are getting pay cuts, losing their jobs and losing faith in the financial structure aswell as cutting back on their spending to pay off outstanding debt.... SOMEHOW demand will come out of nowhere and suddenly Americans will start investing more, its the biggest farce i've ever heardHow does one invest when there is no money to invest
simple law of demand buddy, prices go down, people spend more. its just a cycle, or would you rather have the government artificially inflate prices and create investment which would have never been worth the risk in the first place?
anyways whats wrong with paying off debt? let people build their equity up so we have a stronger foundation.