Quote:
Originally posted by Mmmm, Burger (C.J.)
Yeah. We don't export much, do we.
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Ah. So your hope is to choke off consumer spending (2/3 of the US economy) and expand investment capital and, if that capital goes overseas, we'll just export to them and make up the jobs that we lost through reduced consumer spending that way?
Great idea. Well worth the insane complexities you propose.
Everyone knows the US savings rate is too low. But any remedy to that needs to be -- and only needs to be -- incremental. A savings rate can also be too high, especially in a well developed economy that has sophisticated capital markets. I.e., Japan, 1990s to present. Proposing drastic, disruptive change is always risky -- and you are doing it to obtain a reward that not necessarily a good thing.
Reading your posts, one would think there is a capital shortage in the American economy. That the reason companies are not building infrastructure and developing capacity is because people are not investing enough money, and because they don't have access to inexpensive financing. None of that is true, nor is there a shortage of productive capacity.
