 Help in the worng place!
Having been recently hit with the news at as of next Tuesday (24th) I'm unemployed (again) from the auto industry, I am seeing things first hand as well.
Companies are pulling in their belts with decining sales, stopping investment in new/better products, as their cash flow dries up.
The government says it is going to hep the companies by pouring cash into them, the same way it is propping up the banks, who seem to be vast black holes for 'our' money.
It also says 'we' are going to spend our way out of recession, but how can 'we' if 'we' haven't got any money to spend and the the loans have all dried up?
Instead of pouring more and more into the banks, how about setting up a sort of guaranteed loan scheme to individuals for environmentaly friendly products?
Say if you wanted / needed a new car/van, how about an interest free bank loan over 5 years, guaranteed by the government on identified 'eco' products?
That way, people would have more incentive to buy, companies would get the boost in sales, banks get their cut as they normally do, money filters through the sytem, everyone is working again, and can afford the loans to buy new / better products.
Pouring 'bad money' after 'even worse money' is not helping anyone and making the situation worse!
Or am I missing something here?????  |