Ideas for fixing our "depression"...?

Question

What if everything was cut in half except whatever you have in the bank?
1. Salary
2. Prices
That means that everything would still be at the same ratio. Your $15/hr job is now a $7.50/hr job, but your $1400 mortgage is now only $700 so now problem right?
I think this would make people increase in their spendind because they now effectivly have twice as much money in their savings/checking accounts. So that $20,000 car just came down to $10,000 and you can buy it now, and buy something else. If there are more people buying stuff, then more jobs should open up because companies will need to manufacture stuff quicker. What do you think? I need all the good and bad points....

Answer 1

Yeah well hell it has been cut in half over 23 million people lost their great paying jobs and now have to work 3 just to get the pay they used to have. Depression well heck get rid of the jerk off in office get America back working.

Answer 2

Think about it a little longer. It still amounts to the same problem. You cut the cost of the car in half. But your paycheck is half too.
So only at first would have more money. That is, if you had anything in your bank account.

Murray Rothbard: (on business fluctuation)
"There is no need for any special "cycle theory" to account for them. They are simply the results of changes in economic data and are fully explained by economic theory. Many economists, however, attribute general business depression to "weaknesses" caused by a "depression in building" or a "farm depression." But declines in specific industries can never ignite a general depression. Shifts in data will cause increases in activity in one field, declines in another. There is nothing here to account for a general business depression — a phenomenon of the true "business cycle." Suppose, for example, that a shift in consumer tastes, and technologies, causes a shift in demand from farm products to other goods. It is pointless to say, as many people do, that a farm depression will ignite a general depression, because farmers will buy less goods, the people in industries selling to farmers will buy less, etc. This ignores the fact that people producing the other goods now favored by consumers will prosper; their demands will increase."

Doug Casey: The Greater Depression
"The biggest single problem, however, is that there are trillions of U.S. dollars outside of the U.S. Unlike Americans, foreigners have no reason to hold them. And at some point very soon, perhaps when the Fed finally hits the wall on its ability to raise rates, these overseas dollars are going to start flooding back home, while the products and titles to real wealth flow out of America.

Therefore, when the trade deficit starts turning around – which most people will think is a good thing – that will be the real tip-off the game is over. Trillions coming back to the U.S. will skyrocket long-term interest rates and inflation. The dollar will go into freefall."

Answer 3

You are confusing depression with inflation. BTW, in this economy, if you are not raking in money, WAYSA!?

Answer 4

but what if there is no savings account? then how does this do anyone any good?