ISP Lobbyists Shape Broadband Stimulus Plan > What the **** good does it do handing money to large MegaCo

reply to fiberguy

Re: What the **** good does it do handing money to large MegaCo

#1 is what postponed the meltdown into the late year.

Postponed but did shot to fix since all the money that was spent essentially sent to china.

Actually it went to the banks as people paid down debt. It wasn't big enough to actually "fix" anything. The Great Depression ended as a result of spending the national debt up to 120% of GDP. Only WWII level spending was large enough to end it. Our problems aren't nearly as large as the GP, but it will take much more than a few hundred billion to jump start.

Yea people who were seriously in debt used that money to forestall their fate, but people who actually spent it were esentially sending that money from uncle Sam to straight to china.

If they bought Chinese built goods, absolutely, thanks in no small part to the last decade of accelerated job exportation.

reply to Dogfather

reply to Dogfather
And how much shit today isn't built in China or some other south east Asian country?

Tons. We don't have 3 times the GDP of the next largest country because we don't make anything. It's just not stuff you find at Wal-Mart.

My point exactly.

Since giving money to the consumer funnels that money into stores like Wal•Mart, Target, JCPenny, etc we're in essence giving a disproportionately high amount of that money over to other countries almost directly. If we gave money for public works and infrastructure improvements that money would get funneled into companies who are doing the actual work, the companies that supply heavy equipment and supplies to those countries, and those companies employees before it worked its way out of our economy in any significant fashion.

I agree, but a consumer tax cut also stimulates spending on movies, restaurants and other service activities and even if it eventually leaves for China, China indirectly employs those in the retail channels like those at Circuit City.

Yeah but the people who are MOST affected by our current downturn aren't paying much in the way of taxes right now anyways.

They're paying more than $500 in taxes or whatever the planned credit is.

I rather doubt that... the people most affected right now don't have jobs and aren't paying a damn dime in taxes.

Not true, there are millions who have simply seen their hours cut/less over time, fewer tips, lower commissions, lost one of the income earns in the household etc. The economy is hammering on far more than the currently unemployed.

Yes it is, but the people you just described are better off in the short term than the people who have lost their jobs. At least with fewer hours, tips, commissions, etc. they can cut discretionary spending like eating out, gym memberships, extra TV/phone services, and so on to make what income they do have last. For some of them it may not be enough, but at least they can try. The hundreds of thousands who have lost their job at Caterpillar, Microsoft, banks, small business, and everyone else that has made layoffs are not so lucky. They wouldn't benefit at all from anything less than the creation of new jobs.