Wednesday, August 17, 2011

Economics 101

I will not be boring giving a full lesson just an oversimplified example of why we are not recovering. The economy is based on supply and demand, meaning if nobody is buying the seller must close. Republicans want to cut government spending but the government is the largest buyer in America. If the government spends less it automatically means less jobs and not just less government jobs but less jobs everywhere. The government buys supplies for the military, food, clothing, construction projects, and alot more. These things are sold by PRIVATE industry and this keeps those PRIVATE industry jobs around. You will constantly hear about "pork spending" but what most do not realize is when the government funds a study of the life span of whale sperm, besides the scientific reasons, it provides about 60 people good paying jobs doing the study. Those people in turn buy goods and services keeping the economy growing. If we continue the cutting while we are stagnant and not recovering we jeopardize any chance of climbing out of the recession. Just imagine that the government stops the food stamp program next month. That would mean over 400 million dollars less spent on food items at groceries. Groceries will need to shrink both their staffs and their orders so many cashiers and stock people lose their jobs, farmers and manufacturers of food items will see a decline in orders and lay off sales people and truck drivers as less are needed, with less people to manage managers and office positions will disappear as well. You can call food stamp recipients lazy all you want but as long as they spend those food stamps they are helping the economy. The same goes for welfare, wic, unemployment, and any other program that puts spendable money in the hands of those who MUST spend it.

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