Hi Jon,
Does more money being spent in general really help fix the problems you've brought up?
Economics so so complicated due to the variables. One facet may have no bearing on another and yet impact some other whole can of worms.
For instance where I live is somewhat insolated from some of the current US economic crisis due to the US Army base Ft Hood. Lots of cash every month floating around. Lots of industry growth in the form of resturants and stores. But just 50 miles to the north is a completely different scenario. Since in my area there is a group of consumers with a steady monthy paycheck and some disposible income to tap, Yes the number of resturants and stores has increased and with that the number of jobs for folks to run them.
But the hotel industry here is flagging. Not to many big companies are sending employees out of they're regions for meetings and marketing or conventions. Since those dollars are not being spent here for lodging 2 large hotels here have went bankrupt with a third on the way. So all those jobs are being lost.
I can not see how there can be one economic formula to fix our problems. Every state, city and town in this country will have different sets of problems. the one common thread I see is the middle class has curbed back borrowing and spending due to several impacts.
One being uncertainty, another is banks not freely lending as before, the reduction in consumer spending reduces the need for increased production. But also leads to a increase in durable goods setting on shelves and warehouses. This I assume further reduces company profits which leads to yet more job losses. The stock market reacts to all this news and the fed is putting out fires everywhere they can to no avail. I think this whole thing is one big market correction. It will take quite some time I think before our economy is stable again. My 2 cents.