Yeah you all hate the way everyone is expected to buy excessively at christmas.

 

We all know without Christmas we'd not enjoy have the perks of a strong economy as we have.

Yeah you all hate the way everyone is expected to buy excessively at christmas.

 

We all know without Christmas we'd not enjoy have the perks of a strong economy as we have.

 

Well the strength of our economy wouldn't necessarily suffer as a result of increased savings or reduced spending in the consumer discretionary goods area. What would happen is this money would be left in the bank, which would lend it out for productive purposes. Or it could be spent on more useful devices like appliances or upkeep.

 

Don't think that an economy's wherewithal is linked to just one segment (in this case consumer spending).

Won't spending even more in these sales at Currys etc do more damage?

In the long term yes, short term no. In the short term it will help the economy and make things look better but after a little while, going into more debt and not saving will destroy the economy.

 

Our politicians just care about right now, and spending more and getting more credit will help retail sales and help the market to go up and then they can say were heading back to safety, when in actuality we are just doing a short term fix that will make everything worse.

I'm going to do my bit for the economy tomorrow, nothing wrong with a bit of shopping if you have the money to back it up, and not go into debt.

 

I'm holding off filling up my car to the top like I usual do until the price of fuel around this area comes down, but being a 1 supermarket fuel area, it takes time. Times like this I wished the local asda had a fuel station, would screw Tesco over

if all of these companies are in debt... who are they in debt to? this just seems to be cutting out the middle class.

 

 

...random... but last year in my history class, we were studying the great depression for a little bit, and my teacher said something about how we would soon be heading into the same problems again because of the patterns that were being repeated. ...i hate it when teachers are right.

if all of these companies are in debt... who are they in debt to? this just seems to be cutting out the middle class.

 

 

...random... but last year in my history class, we were studying the great depression for a little bit, and my teacher said something about how we would soon be heading into the same problems again because of the patterns that were being repeated. ...i hate it when teachers are right.

 

Well the key thing to remember is that in economics, everything is interconnected. The middle class isn't left out of the loop at all.

 

Businesses borrow money by issuing corporate bonds, which are just contracts that say "Give us money and we'll pay it back later with some interest added". The buyers of these bonds are usually pension funds and insurance companies. The pension funds and insurance companies get their money from the middle class.

 

So as much as the Democrats make fun of the idea of "trickle down" economics, it's a very real thing. Democrats talk about moving money toward the lower class (by reducing the health insurance burden on those who don't pay taxes, among other things). This has the effect of increasing consumer spending, because the poor typically don't save as much money as the middle class in America. Consumer spending can only prop up the GDP in the short-term, because eventually the money runs out.