Science Forums 2

[wufwugy]

It would work for a very short time, but as the market became flooded with product they would devalue too much, and investors would essentially paying for labor that doesn't produce more than it costs.

Your idea is actually part of Keynesian stimulus in times of recession, but only one part and there are much better to do it. Your idea would not benefit over the long term, but yes it would help during short term. However, it wouldn't be nearly as cost effective over the short term as what we've already been doing i.e. expanding unemployment insurance and shovel ready projects.

Creating income is not hard. It's creating sustainable income that's hard. In this crisis, we have done very well at making the increasing unemployment not much of a problem; the real solution is in fixing the financial sector.

So actually your suggestion is on the right track WRT one area of a recession, but what I don't like is creating more supply in doing so. A better solution involves creating more demand without the increase in supply since we have too much supply