If we all use our surplus money to buy stuff, we can save the economy. For example, I used to save €100/month. Now, I'm spending it all! I bought GTAIV and GoW2 this month for €50, and I spent about €15 on waffles. (I normally rarely eat stuff like that) That's €65 invested in the economy instead of putting it on my savings account. With the remaining €35, I'm thinking of buying SFIV or Sega Mega Drive Collection. Putting money on a savings account is selfish! Help me stimulate!
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Anonymous2009-02-21 1:58
During a recession people cut back on luxury and convenience products which results in job losses in those sectors, the thinking behind keynesian economics is that a recession is all an illusion and if everyone started spending again (by lowering interest rates to hurt savers) it would create jobs and prevent further job losses and everything would be back to normal again. Hooray!
Just because you are fiddling with the numbers of a nation's monetary system it doesn't make it more legitimate than fiddling with the accounts of a business, it doesn't change the empirical reality of the economy. People are spending less because there is less they are willing to spend their money on, it doesn't matter what their reasons are it's up to businesses to produce something they are willing to pay for not the state to force them to buy shit.