People once bought what they could afford. By giving an unending amount of credit, people started buying expensive TVs, computers, vacations, etc., that they really couldn’t afford on their salaries. This helped the economy until most were so deep in debt that they can’t keep up with their credit card payments.
And now people can’t afford to buy things and credit is tight, so the economy is only getting weaker.
Did overuse of credit cards help artificially build up our economy and now we are paying the price?
Yes, as did the “globalization” of our work force.
Off shoring millions of good paying jobs with nothing to replace them was shadowed by easy credit.
Once the credit train stopped (thanks to the 2005 Bankruptcy Act and other gifts to the banks), the economy started to crash.
Now, it doesn’t matter what they do, throwing money at people to buy Chinese products won’t help our economy much at all.
Until we bring good paying, average intelligence (ie manual labor) jobs back to our country, this downward path is just going to accelerate.
And, I know the experts disagree with me. But who cares what they think, these are the same “experts” who told people in 2007 that housing could only go up.