The Economy

In 2007, President Bush asked Americans to "go shopping" in order to spur on the economy. I would like to take this opportunity to do the same thing. It's my sense that a lot of what's happening now is due not to people or businesses not having enough money to meet their needs, but because they're UNSURE of what the future holds. Many businesses, including my own, are experiencing cash flow issues due to late payments by other businesses. Everyone is holding on to what they have, because they don't know what's coming. This is especially true of businesses, because there really is no impulse buying in this arena. A business that doesn't need to spend money won't spend it if it's unsure of when the next check is coming in. If, on the other hand, regular payments are arriving on time, the whole business cycle changes. Instead of holding on to money and waiting, businesses begin to feel comfortable again, that the money that is owed them will come in, and so they begin to spend again.

Here's my prescription for the economy: If every adult in America, for the next six months, went out and spent an average of $100 extra per month, that would inject 120 Billion dollars into the economy. Businesses would suddenly see cash flow pick up, and they would then open up their check books and start spending money on the things that THEY need. Of course, some might only be able to spend $2 extra per month. Others might be able to spend $500 extra. My suggestion is, just do it. Just spend some money. If enough people did this, the repercussions would be unmistakable, the nation would get off it's collective duff and we'd be solidly on the road to recovery. Don't believe me? Prove me wrong. Go out and spend some money and show me that it doesn't work. But it's bound to work, because that's how economies function. Money in, money out.