Has the worlds population, all at once, decided to not buy anything?

>>1262963
THOSE faggots!!

All of the money in the US economy has to go to paying for the military industrial complex, supporting boomers, and mexicant/dindu welfare

All the money in Canadacuck, Ausfailia, and EUcuck countries has to go towards mass refugee welfare, sanddindu welfare, and government surveillance of all whites

>>1262984

All Aus money goes into financing mortgages and boomer retirements. Something like 62% of welfare goes to pensioners, 33% to disability and the remaining 5% to unemployment benefits.

>>1262992
>>1262984
YeahI agree but thats national income expenses .. how does that take it out of peoples income or pay thus making them stop spending up on stuff..??

>>1262992
Your point is more what I was getting at...if mortgages are high enough that means people have less to spend on other stuff. So we would need a housing bust to reduce those mortgages...see what Im getting at?

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>>1262984
Basically this, he also forgot to mention single mothers which daddy government spends a shitload on

>>1263003
I agree too! but why did the normal people just stop spending ...too much debt not enough products to buy ??

>>1262997
I know, i was replying directly to the /pol/ack with the "muh immagints (sp)" shit.

But no, we don't need a housing bust. A lot, and i mean a LOT of equity is tied up in australian housing. An amount that is disproportionate to the population size and GDP. This is equity used to setup and finance small businesses that do the majority of employing in this country. Suck the equity out of the housing market and unemployment will skyrocket as businesses fail. This of course then leads to defaults on existing mortgages as unemployment increases. Fast forward and worse case scenario would see a deflationary death-spiral were no one spends, business continually lower prices resulting in less profit taking and more job cutting.

What we need is a long period of sustained but very minimal growth in house prices along with a very gradual phasing out of negative gearing and a cultural shift into investment in emerging technologies and markets. But we're too stupid a country for that to happen without a big old shove with the "your economy is fucked" stick.

>>1263003
Except you're wrong. You get given a breakdown of where the allocation of welfare in the budget is spent. Approximately 95% goes to pensions and disability.

This "all our money is spent on dole bludgers" is a dumb whitetrash fallacy. What we spend on unemployment including "muh immagints" is proportionally tiny next to what we spend on keeping retards alive and an increasingly aging population.

>>1262955
Business figured "lol, we can make money if we just pay our workers less" but then all businesses ended up doing this because of competition and now consumers don't have enough money to buy things anymore.

>>1263043
Not entirely true. In Australia it's more like..

>Liberal Party election campaign 2013:
"BUDGET EMERGENCY!"
"BUDGET CRISIS!!"
"MINING BOOM OVER!"
"BUDGET EMERGENCY!"
"BUDGET EMERGENCY!"
"ITS A CRIIIIISSIIIIIIIIISS!!"

>wins the election
"Fuck, why aren't small businesses and people spending money?"
"Why aren't people taking out loans"?

People are spooked. 08 is fresh in everyone's minds and the economy has slowed to a crawl. I work in the commercial sector and i have never seen this much empty floor space in the CBD in 10 years in my job. People in the private sector haven't had a pay rise in 3 years. Businesses are running purely on credit waiting for it to turn around. We're balls deep in a recession.

>>1262992
>unemployment benefits
that's not a benefit that's an aid some unemployment is temporary and healthy for the economy 5% doesn't seem too much.

>>1263054
>We're balls deep in a recession.
hello! he entire world is and guess what it's still the 2008 recession.
recessions must happen if you fuck with them you prolong them and increase the damage.

credit is paying with future prosperity to get shit now

as I see it, the leftist talking point of
>le countries are not le people we can have infinite debt

may not be technically incorrect, but in practice you eventually get to the future where you have to sacrifice a large % of your wealth to pay for shit you took in the past on debt and that's where we are now