Don't forget, our government also encourages spending. Indeed, consider the entire premise of Keynesian Economics where the answer is stimulate demand (spending/consumption) over capital accumulation. Both major political parties buy into this idea.
Cars for Clunkers was about new sales: taking a possibly working asset, albeit an older one, and trading it in (with cash) on newer cars.
Interest rates are part of this and there are even suggestions going around now for negative interest rates. Why? To make savings less attractive and spending moreso.
Cars for Clunkers was about new sales: taking a possibly working asset, albeit an older one, and trading it in (with cash) on newer cars.
Interest rates are part of this and there are even suggestions going around now for negative interest rates. Why? To make savings less attractive and spending moreso.
Completely predictable and what our leaders want.
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