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Author Topic: Prop up the economy, support your parents!
clockwork
rabble-rouser
Babbler # 690

posted 10 December 2001 11:19 PM      Profile for clockwork     Send New Private Message      Edit/Delete Post
quote:
Now higher, not lower, interest rates are preferable because interest is no longer a cost, but rather income that we can pour back into our savings. Retirement is foremost in the mind, not spending -- except, perhaps, on the grandchildren.

Interest rate cuts stimulate expenditures by borrowers and penalize the income of savers. An aging population results in a reduction in the number of borrowers and an increase in the number of savers. The massive boomer population in North America is now entering prime saving ages. Even those who are not yet there are in their 40s, beyond their prime borrowing ages.
In this new demographic world, interest rate cuts are increasingly ineffective in boosting the economy. Our senior decision-makers should not be surprised that numerous successive interest rate reductions over the past year have not stimulated spending. The demographic envir- onment has changed forever.

Turn up the economic heat

From: Pokaroo! | Registered: May 2001  |  IP: Logged
DrConway
rabble-rouser
Babbler # 490

posted 11 December 2001 12:26 AM      Profile for DrConway     Send New Private Message      Edit/Delete Post
I hear the siren call of the printing press and increased government spending.

Hark! Do we yet herald a return to the days of the 1960s?


From: You shall not side with the great against the powerless. | Registered: May 2001  |  IP: Logged
DrConway
rabble-rouser
Babbler # 490

posted 11 December 2001 01:45 AM      Profile for DrConway     Send New Private Message      Edit/Delete Post
And while we're at it, check this great Ad!
From: You shall not side with the great against the powerless. | Registered: May 2001  |  IP: Logged

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