Ron Paul at the debate last night

[Thoth]

1) We are borrowing from China for the rebate and most will end up buying products made in China. So, whose economy is being stimulated?

2) Infastructre. Specifically, he said build 2 more lanes from Bangor, Maine to Miami. What better way to "stimulate" the economy than to have Americans use American products to strengthen/improve America?

Thoughts?

 

[Denny Crane]

The bulk of the sales of Chinese goods goes to US companies that hire US workers.

I think the idea is to head off any big companies doing mass layoffs. This is why the depreciation part of the plan is there - it also helps companies with their bottom lines so they don't need to layoff as many (if any) workers.

 

[Thoth]

<div class='quotetop'>QUOTE (Denny Crane @ Jan 25 2008, 04:56 PM) <{POST_SNAPBACK}></div><div class='quotemain'>The bulk of the sales of Chinese goods goes to US companies that hire US workers.

I think the idea is to head off any big companies doing mass layoffs. This is why the depreciation part of the plan is there - it also helps companies with their bottom lines so they don't need to layoff as many (if any) workers.</div>

I wondered about the 1st but am no economics guru, so....

As for the 2nd, color me skeptical. I don't want get off on a Lou Dobbs/Glenn Beck like rant, but, companies are going to do whatever they want then spin their rationale simply to satisfy the bottom line & Wall St.

 

[Denny Crane]

I agree with your second point, mostly. A lot of companies are "green" or otherwise consumer friendly, tho. What's certain is that the more things people buy, the more people Walmart needs to hire. When Walmart feels the squeeze on their bottom line from fewer sales, they'll lay off people to reduce expenses.

The bottom line is, by definition, revenues minus expenses.