My opinion on how to fix the economy.

[Norm357]

I think we should stimulate the economy by purchasing more beer and tipping more strippers.

Brilliant!

[uicipher]

It will be a few days before I can respond to this in detail, because economics isn't my strong point. Here's an example on why economic policy confuses me:
Trip is claiming that business is uncertain on future policies and is tying up its assets instead of investing.
Wisco is claiming that inflation rates will stay low while the money supply increases which means higher inflation rates.
If we have high inflation, then my caveman economics opinion is that business has great incentive to invest. From what I've read, China has been able to expand quickly by devaluing its currency.

quick point:
I'm aware of how unemployment is calculated, however the benefits have been extended for quite some time so it seems that the rate should be relatively accurate between 2008-2010.

[wisco]

Trip is claiming that business is uncertain on future policies and is tying up its assets instead of investing.

Yes.

Wisco is claiming that interestrates will stay low while the money supply increases which means higher inflation rates.

I think "interest" is what you meant. And, yes.

If we have high inflation, then my caveman economics opinion is that business has great incentive to invest.

Depends on what you're investing on. Most businesses rode the .com/realestate/whathaveyou bubble. You invest to make money. There's not much making money out there right now. Commodities would be their best bet - oil, agriculture, precious metals, etc.

From what I've read, China has been able to expand quickly by devaluing its currency.

China has a manufacturing based economy, we do not. They devalue their currency to export cheap goods, resulting in a large influx of foreign (read: more valuable) money. They are the worlds largest creditor, we are not.

WE have a service based economy, a $14 trillion (official) debt, and we run on credit. We have massive unpayable entitlement programs. We have massive trade deficits. If you combine our total debt, all obligations and entitlements, all social programs - our debt exceeds the GDP of the entire planet. Devaluing our currency is the last thing we need to do.

quick point:
I'm aware of how unemployment is calculated, however the benefits have been extended for quite some time so it seems that the rate should be relatively accurate between 2008-2010.

The government is not nor is it ever accurate in its "accounting" of anything. The benefits don't run forever, I know several people who have collected for 2 years and have now lost all benefits - they still don't have a job.