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Message: <blockquote data-quote="Dannyalcatraz" data-source="post: 7989898" data-attributes="member: 19675">In any consumer based economy, one of the best ways to jumpstart it if it’s flagging is with consumer spending.  You get the money flowing through/out of the hands of economic actors, it’s like a shot of adrenaline.  And the people most likely to spend money are the ones at the base of the economic pyramid.  In the USA, people in the lower economic strata spend spend on average 95%+ of their income- some spending more than they earn, accumulating expensive CC debt in the process.  In contrast, those in the upper percentages save 30% or more of their income.This is part of why Arthur Laffer’s supply side economics only works under economic conditions that haven’t been seen in the USA since before WW2.  More of the money sent into the hands of the rich is saved, and is thus taken out of circulation.(That’s also why austerity programs are usually counterproductive.  They take money out of circulation.)Which is why, unless a large business is crucial to the actual economic and strategic well being of the country, they shouldn’t be eligible for bailouts*.  Failure IS an option in true capitalism.  See Adam Smith’s Wealth of Nations.Americsn mega-businesses have not only subverted that notion, their salary structures compared to their European and Asian competitors leaves them inherently less able to adapt to changing market conditions...and thus more likely to need a bailout.  As has been put by certain economists, they have have internalized profit while outsourcing risk.TL;DR: the current US pandemic economic recovery programs are poorly designed and lack proper oversight to actually aid a rapid recovery.* at least, not without LOTS of strings attached.</blockquote>

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