INFO-Tain-ment

Wednesday, January 28, 2009

Supply Side v. Demand Side

The only problem I can see with the budget is that it is purporting to solve the wrong problem - by providing cash to businesses to help their faltering bottom lines, they should be able to pass those benefits onto consumers.

Except, now, manufacturers are going to have a bunch of stuff that people are still hesitant to buy, and some of their money to make it marginally cheaper.

They didn't fix the demand- that is what created the problem in the first place.

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