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<blockquote data-quote="Tim McCulloch" data-source="post: 55460" data-attributes="member: 67">Re: critical thoughtPublic debt is not displacing private capital.&nbsp; The economic principle is call &quot;disintermediation&quot; and in college debate we ran a case based on that concept.&nbsp; It was enough of a &quot;squirrel&quot; case that we often won because the negative team didn&#039;t have the evidence necessary to refute our case.Public corporations, the kind that can really create jobs, are sitting on large piles of cash right now.&nbsp; Corporate profitability is way up, but hiring is not.&nbsp; Why?&nbsp; Because there is low demand for many goods and services as the PUBLIC at large sees high unemployment, stagnant wages and other factors that make them reluctant to spend either savings or on credit.&nbsp; In fact, consumer credit card debt is dropping.&nbsp; So while the lenders are getting paid back, those funds are not generating the kind of consumer demand necessary to stimulate the businesses to hire more workers.</blockquote>

[QUOTE="Tim McCulloch, post: 55460, member: 67"] Re: critical thought Public debt is not displacing private capital. The economic principle is call "disintermediation" and in college debate we ran a case based on that concept. It was enough of a "squirrel" case that we often won because the negative team didn't have the evidence necessary to refute our case. Public corporations, the kind that can really create jobs, are sitting on large piles of cash right now. Corporate profitability is way up, but hiring is not. Why? Because there is low demand for many goods and services as the PUBLIC at large sees high unemployment, stagnant wages and other factors that make them reluctant to spend either savings or on credit. In fact, consumer credit card debt is dropping. So while the lenders are getting paid back, those funds are not generating the kind of consumer demand necessary to stimulate the businesses to hire more workers. [/QUOTE]

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