Sunday, August 21, 2011

America: Singing the Woes of the AAA Downgrade

I was always told that it was important to keep your spirit up in the hardest of times. Here's a song for my cousins south of the border feeling blue about the downgrade by S&P ratings agency of US federal credit from AAA to only AA+:

I guess the unemployed in the US can take up the honourable tradition of musicals, folk singing, tap dancing, and pan-handling. The wonderful thing about economics is they understand the value of these new industries. If $1 goes into one pan-handlers bucket and he turns and immediately deposits in the begging bucket of the next door pan-handler, and he in turn does the same with their neighbor, then the economy can revive.

If you can get the "velocity" of that money up near the speed of light, then that $1 can quickly circulate among all the unemployed, not just once, but thousands of times a day and you will suddenly have a thriving economy where the previously unemployed are now making over a thousand dollars a day busking on the street. With 25 million unemployed, that mean $25 billion in daily income and $10 TRILLION annually of new national income for the US via the unemployed now fully occupied in the "entertainment" industry.

That means the US would be instantly back on its feet and happy. No food, no lodging, but a lot of previously unemployed people shucking and jiving as fast as they can to keep that one dollar going from bucket to bucket. A truly "lively" economy.

No comments: