How can our recession be prevented?

Question

If the top 2 percent of the rich own 50 percent of the world's wealth, then that money needs to go back into the economy. Its going to be the haves and the have nots if this doesn't stop. There won't be a middle class anymore. One of the ignorant responses I heard to this was "why should the rich suffer? they earned that money!"... First of all, they will not "suffer" even if they lose 90 percent of their income. They will still be multi millionaires. The wealthy need to come together and make a large donation to the economy.

Answer 1

If you want to live in a socialist country I would suggest moving out of the USA. Why should some have to give up 90% of what they earned? How do you suggest they give their donation? Personally send each of us a check not going to happen

Answer 2

Who says that the money is not going into the economy?  The only way for it NOT to go into the economy would be if all the rich people were to keep their wealth in cash under their mattresses.  But since most rich people tend to know a thing or two about money, they either save or invest their wealth.  If they save it, banks lend it out to other people and businesses, and if it's invested, it goes directly to companies so that they can expand their business.  So see, it does go into the economy.

Answer 3

You better start using the right term . An that is Depression yea that where were headed , we been in a recession now for a number of years .

Answer 4

It is a fact that the rich are getting richer and the poor are getting  poorer. A recession is caused by lack of demand. The squeeze on working families has them tightening their belts. Companies lay off workers. State and local governments, mandated to balance their budgets, choose between deep cuts in spending on education and health care or increased taxes. Only the federal government is able to act - by spending money or cutting taxes, adding to a short term deficit to get the economy moving. The Federal Reserve can also try to lower interest rates, but with the dollar sinking and credit markets shattered flooding the market with money may just feed inflation without much effect. And in fact, the Fed’s previous interventions under Alan Greenspan helped blow up the bubble that triggered this mess. The other thing you have to understand is inflation. Today it is mainly caused by energy and food prices, as well as some cartel pricing policies of certain industries. Monetary policy can not control these prices. Oil prices are high mainly because of the devaluation of the dollar, and speculation in futures trading. I’ll bet if we taxed the wealthy out of the country, put the squeeze on the  upper middle class and gave breaks to the poor and lower middle class we wouldn’t be in this mess.

To prevent recession, emove a few items from the basket of items used to calculate inflation or track it,(try www.viritix.com).. say fuel, food and housing. Then, have those prices skyrocket. Lots of cash will change hands, but no additional goods. Then, when a lot of people are out of dispensable income and stop purchasing things like medicine and refrigerators the overall amount of cash changing hands will remain high (no recession) even though people are broke because the inflation figure is not realistic and the amount of cash changing hands is distorted because goods that are not included in the inflation basket are sky high but don’t count to devalue the currency on paper.

Answer 5

That's a fantastic idea. I wonder if overseas people could help? Like our great american friend Bill Gates.Shall we send him an email. We could start it,Dear Mr. Nice rich man, it's your friends from over the pond here. can you help us out our country's a little strapped for cash?