axt113 on 23 June 2010
| ithis said: Quicq questions: How come the economy is in this bad shape although everyone was spending like crazy for like a gazilion years before the crisys, and nobody saved nothing? How will trying to spend more now that there is less will help when spending all of it when there was lots lead to now? |
Few reasons, first off, it isn't really spending that is the cause of the economic decline, secondly, not all spending is equally beneficial, some spending has more bang for your buck, finally, without economic spending, there is little reason for compnaies to hire, or produce, and more reason for them to layoff, creating a cyclical downwards spiral.
