Economy

[beavis]

Originally Posted by LiL stumppy

Thanks for the input.

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

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

[PhillyChiefFan]

Originally Posted by beavis

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

This.

People purchasing houses they could not afford. The American Dream was telling them to spend more than they had, same with credit card use.

When people spend money it does make the economy grow and expand, but the USA has been growing for years now and people got comfortable spending ungodly amounts of money on a credit card. Keeping up with the Jones' became a way of life, and now its biting these folks in the butt.

People are scared, and are therefore not buying new cars, houses, boats, etc. This forces businesses to use the cash they have on hand to pay their employees and the electric bill and not expanding their business. This causes growth to come to a grinding halt. People are pulling money out of the stock market, and it just becomes one big domino effect. Trillions of dollars on paper, have disappeared.

People who are of retirement age can't even retire, because their nest egg has been hit so hard. My dad has lost 25% of his retirement fund.

Hope that helps, its a tough question because there is SO much involved with the economy.