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Mom of Toddlers

I guess Baby Boomer seems to be a bit insecure about anything.

D. P. Lubic

The generational factor could be at work, but I think a bigger problem is the lack of demand, or to put it another way, a lack of customers.

People who are out of work have no money to spend. The ones who do currently have jobs are worried about them, and are anticipating tough times, getting rid of debts and saving for a rainy day. That's a good thing, but in the meantime, they aren't spending money on cars or houses or other things. So, the business owners aren't spending money on hiring people or buying stuff because nobody is spending money, and many people aren't spending money because they have no jobs or are worried about the job they have, and because they aren't spending money, business has no customers and can't afford to hire or invest. . .

There was an interesting comment about this in the local paper here. A local writer said a tax cut for businesses wouldn't do any good at all. He said a business wouldn't spend money if there weren't customers for it to serve, and if it got a tax cut, the owners would just pocket the money as extra profits. And it's true, hiring people to just stand around because there are no customers to serve isn't a way to make money.

Thom

Some interesting logic. However, I would bet that a smart business person is still going to invest in a good deal. Maybe a bit slower, maybe requiring more data but they are still likely to invest in smart businesses.

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