Thursday, August 11, 2011

Where Will Economic Growth Come From? -

It seems to me as a non-economist that growth is going to come when people and organizations (i.e., mostly businesses and governments) spend more by way of purchasing and/or investing.

Governments everywhere claim to be out of resources for them to do this, and the will to borrow seems to have evaporated, for better or worse.

So put that group aside for the moment.

Then take organizations. Sure, there are non-profits and others who could spend more of their money either giving it away or buying stuff to give to others, or at least investing it in a way that adds to growth.

But it's the two remaining groups - businesses and individuals - that offer the greatest opportunity.

There is no point beating up businesses to hire people just to reduce unemployment if they do not need them. But businesses do have a fiduciary and moral obligation to support the economic health of the markets they serve.

So why shouldn't they start buying more things that they can give to people unable to afford them. The buying of the goods and services means that those vendors/providers wind up doing better, mayeb even hiring more people with enough of this. The company does better because the economy improves. And, lest anyone forget it, the people who really need help with basic necessities get some help beyond whatever governments provide.

That idea has not receive a lot of attention.

This one has received none.

Why not start asking rich people - people with more money than anyone with a conscious might say they need - to do the same. They could start simply buying things in their local markets that other people need and cannot afford. Local food. Local products. Local services.

Just give these things to the people who need them and don't expect a tax deduction.

So what if you wind up with a net worth of 3 million USD instead of 3.5 million as a result?

Imagine what the 500,000 could do for the economy and some wonderful fellow citizens.

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