An infant can do it. Consumption is no more labor than opening your mouth to chew. If the people are inclined to save its through government manipulation. If people are saving. The question to ask is why are they saving? What is it that they are trying to purchase in the future that forces them to save? Is it healthcare? Is it education? Is it a new car? A new home? Why are they withdrawing themselves from the market and refusing to participate by saving?
If they have concerns over their future health or the education of their children. And that is what forces them to save. Then just give them free health care and free education. And then they will have no incentive to save for those consumer items. Are they trying to put together enough fiat money for a new car? a new home? Is that what is stopping them from spending ? Because we can wire them money in the form of rebates to pay for that new car or that new home.
You can decrease interest rates on savings accounts. You can also raise inflation by creating the specter of better to spend now than later.
If encouraging consumer spending was truly the objective, there are a number of ways to reach that objective.
No comments:
Post a Comment