Massive global recession can be avoided - By laws that dictate consumers spend

Here's a simplistic thought about GDP vs. debt. There are two ways to avoid recession, first to increase consumer spending (GDP) which also increases tax revenue, second is to cut government spending.

The US Supreme court (barely) upheld the constitutionality of ObamaCare's individual insurance mandate. This verifies the constitutionality of congress forcing consumers to spend. Now Congress can force consumers to spend money.

The question of laws forcing you to spend has been answered. Question is, what is the most economically effective thing consumers should buy? Or what should law force you to buy?

School supplies, which they can donate to their local schools for tax breaks?

Textbooks, which they can read and pass tests on (and then donate) for tax breaks?

Non-perishable foods, which they can donate to food shelves for tax breaks?

You must make over 9k a year to be nailed with obamacare tax. You can't spend what you don't have so good lucky forcing people to spend money.

What needs to happen is end all these pointless wars, close over half of the overseas military bases and cut military spending by 50%. All the troop coming home would give our economy a huge boost and the cuts would help to keep our debt in-check while the poor elderly don't suffer. We would still have the strongest military in the world, it would put an end to paying $1500 for toilet seat.

You cant force people to spend money they don’t have. I mean, you can but if they dont physically have it then you can’t collect it from them. your argument is valid but the problem is we are in a 40 year credit expansion hang over. everyone’s credit cards are maxed out and now the bill is being requested to be paid. Because of this you’re going to have a slowing of economic growth and a collapse of markets due to people saving and paying off debts.

The average Joe is out of cash and credit. The only thing that’s propping this beast up is expiation of government spending but soon that well will run dry. That’s why you will see no change in reducing the government’s debt. In doing so you will collapse the markets and your reelection chances, the bubble will grow faster and faster until one day investors wake up and realize the US government will fail to pay its obligations or print money to meet obligations. When that day comes, you’re looking at global economic collapse.

That day is only a year or two away. Thats why you have not seen a budget passed by the US goverment in almost 3 years!!!! They dont want you to know the truth.

As a taxpayer, you name it and I've already been forced to buy it, usually for someone else.

How exactly can you increase spending when our pay has bottomed out? Our family can't buy some of the luxuries we used to because of pay freezes. Food has gone up so we are spending our extra mad money on food now. No more trips to the mall or barnes and noble..no more amazon..other than food we aren't making those extra purchases each month.

I feel good though about that. I kind of feel like I'm starving them of profits..we have a tight grip on our wallets and any extra money goes to paying off debts and saving.

The fact that it is legal to force us to buy things, just rubs me the wrong way. However the supreme court upheld that.

How about instead of forcing us to buy things that we don't need, instead we buy things that are locally made and create local jobs? Maybe there's a new phrase to associate to an effective way to support local economy, 'spend local', 'buy locally made', 'buy labor intensive locally made stuff you need'? Like 'buy American' which didn't last long in the days of Walmart/Costco/Amazon.

Some sort of tag like restaurant menus have icons for what is heart healthy, or energy star rating, Some consumer guideline icon that indicates effective support for local economies and jobs, rather than supporting globalization and exporting the American (marketing) lifestyle to 3rd world countries.

Laws force us to 'go green' and 'buy energy star', even outlawing incandescent bulbs. Why not redirect spending to support local economies?

Originally posted by Dbriefed
Or what should law force you to buy?

Well that could never happen but you're close.
Some financial pundits have said that rather than the never ending bail out money going primarily to banksters it should have been distributed to the people. That would definitely have encouraged me to spend
It would be good if people could be encouraged in some way to buy goods produced in their own country except it's complicated. Some domestic goods use imported parts.

I think it's appropriate to mention the formula that is most often used to determine GDP.


GDP = private consumption + gross investment + government spending + (exports − imports), or
GDP = C + I + G + ( X -M )

Think about that for just a second and you'll see why the current fiscal situation in the US is so bad. The only reason that US GDP is growing is the G component, and since the government spends more money than it receives it is using debt that comes with future interest to maintain the illusion of growing GDP.

Balance the US budget and you immediately get a recession level drop in GDP if not a depression level drop in GDP. Neither party acknowledges the reality of our debt situation, and the real pain that any attempt to address it will entail. I think it is better addressed sooner rather than later, but I've heard neither Obama or Romney offer a real plan to balance the budget and get GDP growing without debt financed government spending.