Comment 78607

By DowntownInHamilton (registered) | Posted June 17, 2012 at 22:35:00 in reply to Comment 78596

No, I didn't. In fact, I never mentioned EI at all. But feel free to show me the quote.

What I did say, was that society would be better off paying idle workers to build infrastructure rather than sitting at home. Here is a list of some of the infrastructure projects we could create... http://en.wikipedia.org/wiki/Infrastruct... Are you suggesting that none of these projects would provide an opportunity, for people like your dad, to create value for society?

You didn't say it, you implied it by saying previously, that (incorrectly) I'd like to see people sleeping in cars. Simply creating and investing in make-work projects will not get us out of the recession (did it work during the Great Depression? No, a world war did).

What I have been saying, is that recessions occur when people spend less and save more. Recessions occurred in 1973-75, 1980, 1981-82, 1990-91, 2001 and 2007-09. If you compare those years with this chart( tinyurl.com/7hgyz3g), you will see that those recession years are correlated with an increase in private savings. As for your concern about inflation, could you please explain why long term interest rates are at historic lows? Canada 10 year bond: 1.74% U.S. 10 year bond: 1.59% UK 10 year Bond: 1.67% Seriously DUDE, do you have any clue what you're talking about?

I'd like to think I know a thing or 2 about economics. I disagree completely with your opinions.Are people saving more? Is that why household debt is at record highs? Naturally, when jobs disappear and people are worried about the future, they tend to save more (but not in long-term investments as you suggest). I'd posit that your long-term investments are at historic lows because people can't afford to invest in things that don't have a quick payout.

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