Quote:
Originally Posted by gimpy117
start paying people more and we will spend more. Were supposed to drive the economy but we have no money to do it with!
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Well it's not really a question of simple wage increases. As Aramike points out, if you just raise wages, you'll end up spurring inflation (which actually might not be a bad thing with the risks to deflation that we're facing.) You need to bolster confidence - and the only thing that's going to do that is people feeling relatively confident that their job will be there tomorrow and their house is going to have a steady value. If people are fearful for what happens tomorrow, their wallets will remain shut.