Paul in CA said “Busineses large and small will immediately implement layoffs — some will bounce paychecks, some will just close the doors — because they can’t get the normal short-term financing that they rely on to fund payrolls and day to day operations.”
That is simply not true. Private companies who need to get loans to kite their payrolls don’t deserve to be in business! Would you invest money in a company that does that? Investment money is for capital improvements, for GROWTH – not for paying day to day expenses. Tight money will just curtail frivolous spending and spending by those who cannot actually afford what they want. Go down the street of any low income / heavily subsidized neighborhood on garbage collection day and gander all the JUNK, (like crappy ‘furniture’ and toys from China), that people wasted their money on and then throw out – compared to what’s on the street in upper-middle class neighborhoods who tend to save their money and buy stuff they really need and that will last a while? Frugality has never been the enemy of prosperity; most people who have some money have it because they SAVED IT.
