Quote:
Originally Posted by mookiemookie
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.
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Very true, even though I think that any worries we have of deflation (especially due to housing) are more than compensated for with the additional money printing being done in the name of stimulus.
Otherwise, great point.