Mr Khan said:
The income gap's grown the last two decades. The stock market has recovered drastically since 2009, but where are the jobs? The top earners are maximizing profits while forcing everyone else a rung or two down the income ladder, with predatory hiring practices like calling 2-3 years experience "entry level." (which should be illegal) |
That's the big flaw in BOTH economic plans.
You can stimulate the economy all you want but it's not going to be worth a sack of beans unless there is demand.
1) Right now there is very little demand. People who get extra stimulus money, even regular people are just sitting on it and paying off debt.
2) Stimulus money is temporary, so those who DO spend it don't help the economy, because companies KNOW that money is going to dry up.
3) Due to lack of demand, richer people with money are investing... but in long term projects... and there is a huge run to social which is essentially ways to make money without many jobs and without much spending of money.
We won't get jobs until there is steady increased demand by consumers. So we either need price deflation, or people to get used to "where we are" and live a little more.
Which isn't going to happen when we're activly trying to increase inflation and throwing around fix all plans to remind people how bad the economy is, and convince people there is a quick fix/ things might get worse so we gotta prepare.
Essentially we're running headlong away from what could actually fix the problem just to pretend there isn't a problem.
It's like a kid who spills something and hides it instead of telling their parent. The spill gets worse and worse and sets in, and who knows what other crazy shit he does to hide the spill that causes more trouble.
Pretty soon we'll be Japan and there will be NOTHING we can do to get the spill out.
