Economy
 

Forgive me, I am a total n00b when it comes to this stuff. I quit my job a few months ago (bad idea) and now can't find part time work anywhere. I see everywhere people are taking pay cuts or are getting let go because of the economy. What make an economy bad? I always thought that if people were spending money then everything is good. So why can't people spend more money? Is it the fact that food and everything is getting more expensive?

Please no politics involved.

Watch how fast I can move this thread:

8 Yeas of The Bush Administration makes the economy bad.

Off to the DC with lightning speed!

I was originally going to post it in DC, but since I wanted no politics in it I posted it here.

well, it really can not be talked about without politics

Sure. That'll work.

A workforce that speaks like that.

I have no idea.

If I had to guess, I would say its because too many people spent money that they didn't have.

Before jumping the lil stump man remember he's in high school and is just asking an open, honest question.

My open, honest answer stump is that the people who have the most money of us all are greedy and want more. Since they've bled it for everything it's worth, they're trying to scare us out of more. So far it's working.

With people running scared, those that still have disposable income are less likely to spend it and more likely to save it "just in case." As a result, consumer spending goes down, companies lose sales and revenue and wind up having to adjust in the easiest way of all, with their payrolls.

This is the problem with being a consumption-based economy, if people don't spend the whole thing freezes up. That is the reason for those 2 rebates, to try to get people to spend money to keep the wheels going.

Beyond that you are getting into political territory. If you want to learn this stuff in more detail, go get dirty in the DC forum. There are some pretty smart, knowledgable people over there believe it or not.

Thanks for the input.

What if people started spending money again, instead of "saving it for bad times?" Wouldn't that help?

Saving money is the same as investing money. The money doesn't just sit in a coffee can on the shelf.

Actually, IMO, that's what got us into this mess in the first place. All spending and no saving.

One word made it all happen, GREED

so how do you fix it

You don't want politics and ask this question? I am not sure it would be possible to answer without large political fights.