Businesses that only profit when consumers make poor decisions might be better off dead.

[Robb]

I was watching the news the other night, they interviewed shoppers in the mall who were "buying less this year" and "putting off big purchases until they had more saved up."

...And the economists were wringing their hands. Aren't these sensible practices for consumers anyhow??

[mr_hat]

1. Cutting spending means lost jobs

means less money for consumers which means lost jobs and so goes the spiral.

Krugman has an interesting column today regarding how down is up in a depression economy.

http://www.nytimes.com/2008/11/14/opinion/14krugman.html?ref=opinion

[Warpy]

3. You'd think they'd finally figure it out

and push for increased wages at the bottom and decreased embezzlement at the top.

People will spend when they have money. They're no longer willing to risk everything they have by going into debt for non essentials.

[pnwmom]

5. Increased wages in this economy will mean fewer jobs. There's a tradeoff. n/t

[Warpy]

9. Except that has simply never been the case

which is why you never hear of business agitating to have a minimum wage increase rolled back!

Increasing wages increases demand for goods and services and that increases employment.

Job loss is only a consideration in the very beginning and is made up quickly as demand increases. Consider it like this: make 3 cents a head on 50 customers or 2 cents a head on 100 customers. Do the math and find out where the advantage lies.

Right wing economics is wrong.

[pnwmom]

10. "Job loss is only a consideration in the very beginning"

meaning, the immediate effect is more job losses.

[Warpy]

11. Operative word, "immediate."

I realize few people on the right can think beyond that and that's why the job losses happen. There are never many and they don't last long as employers scramble to meet new demand.

[pnwmom]

4. Thanks for the link. n/t

[pnwmom]

2. Unfortunately, all the sensible consumers and sensible corporation and

sensible businesses that are sensibly tightening their belts right now are contributing to the sudden, severe contraction of the economy.

Most of us have to do it, it only makes sense to do it, but it is helping to worsen the economy every time this decision is made.

[The2ndWheel]

6. For consumers? No

For human beings? Yes.

The entire economy is based on consumption. If we don't consume, where do the jobs come from? If people save until they have enough, where do the jobs come from?

We can't stop, but we can't continue.

[Billy Burnett]

7. So, doctors and dentists should go out of business?

A lot of health problems stem from poor decisions. Diet, exposure to toxins, allowing government deregulation, etc.

I'm not an advocate of the current for-profit system in the US, so I'm considering your point based on conditions in the USA.

[Robb]

8. The health industry does not encourage those poor decisions

Or not often or overtly. Macy's wants you to get a new credit card every time you walk in the door, extend yourself, and spend a bunch.

[Billy Burnett]

12. You're funny. Drs and drug co's are putting people on statin drugs every chance they can.

Deregulation allowing drug company studies to dictate AMA guidelines for cholesterol. So doctors push the drugs.

Next thing you know these people need blood pressure meds too.

Next thing you know these people need diuretic drugs too.

And on and on.

The health industry does indeed encourage poor decisions, and enables other poor decisions too.

Same with the food industry.