The Dean of the College of Business at the University of Southern Mississippi believes the best hope for the United States is that the stock market begins rebounding next year.
Personally, I think that is just trying to build false confidence. Consumption is the only way to build the economy….so the creation of demand is the answer….but to insist that banks begin loaning money again is just to start the whole process that put us where we are today, all over again. The American consumer is a credit addict and making it easy to obtain the drug will not help.
Yes government spending is a necessity for a kick start of economic growth but it should be more consumer based….the more disposable income the consumer has the more spending they will do and then the the more demand will be created.
We can put up graph after graph…but it will make little sense or little difference….it is NOT rocket science….demand creates growth.