Quote:
Originally Posted by wufwugy
What you're suggesting is to increase supply without increase in demand during a recession of depressed demand. Increasing supply like this would result in the market being flooded by product, thus reducing value, thus destroying investment, thus destroying wages, thus destroying the economy. What we're looking at in our situation is strawberry shortcake compared to what would happen if we increased supply three-fold.
Your idea is already well understood, and is used when practical for reducing cost. This is an entirely different issue than our economic woes.
Edit: Unemployment would definitely bottom out very quickly like you say, but the subsequent backlash would be so dramatic we would be losing several million jobs a month due to demand having been royally fucked
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Demand would surely increase, as there are now more consumers with more money in their pockets to buy more stuff that's being produced in more factories working more hours.
How do you expect demand to stay stable if you've suddenly got more consumers buying more stuff with more money in their pockets?
