I hope by now you understand why our economy will not rebound to the glory years, no matter what our federal government does. I will now attempt to connect the dots for you. Our economy is driven by consumer consumption and the more we buy stuff the better off our economy. The Baby Boom Generation, 92 million strong, is the largest in US history and now we are beyond our peck spending years, therefore, we have stop spending and began to start saving for retirement. The next generation behind us, Gen X is a smaller generation and they are NOT at their peak spending years yet and won’t be for at least 10 – 15 years. And that’s causing our economic down turn and our unemployment. So no matter how much more money the government throws at our economy in terms of stimulus packages, it will not be enough and it will NOT work.
Remember: Producers decide what to produce given the demand they see in the marketplace. So let me address this right now. The Baby Boomers are no longer spending; producers are no longer producing as much because of the lack of demand for their products and services. Companies only hire more people when demand for their products and/or services increase, thereby, increasing the company’s revenue stream. I repeat again, companies only hire people when they have an increase in demand for their products and services… PERIOD! Our federal government CANNOT CREATE JOBS!!!! No matter what you hear from Washington, being from the Democrats, Republicans, Tea Party or anyone else. Let me be crystal clear; WASHINGTON CANNOT CREATE JOBS! And if they do create federal government jobs, those jobs are paid for by our income taxes which increase our federal debt.
Companies do not hire because they receive tax incentives from the government. What the government has done with giving tax incentives is letting them keep more money in their pockets and paying less to the tax base of America. Just because companies have more money in their pockets will not make them go out and start hiring people. Remember, the only factor that allows companies to hire people is the increase of demand for their products and services. So whenever you hear anyone from Washington saying they are going to create more jobs, know this, they are not telling you the truth. So now you know.