[quote=Hobie]Still related. Each affects the other.
Current policy has been to sell bonds that increase debt which is spend with the intention of reversing the recession trend. Working? 😉
Rather getting bogged down with theories, like to hear your view on how the mood of the country affects economic decisions and growth.[/quote]
No, it’s not the same thing. He set up a straw man, by misstating an economic theory, then shot it down.
Yes, mood of the country, particularly consumer confidence affects economic decisions, and growth. We have an economy driven by consumer spending. But consumer confidence follows jobs. More jobs, better confidence. You didn’t ask, but I’ll share anyway. There is no quick fix to the problem of jobs. Somewhere between 4 and 5 million jobs were lost related to residential construction. Those jobs aren’t coming back any time soon. And there is nothing that could have been done, or can be done now to fix that.
