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      06-02-2011, 11:36 PM   #33

Drives: BMW turned up to 11
Join Date: Oct 2010
Location: These things go to eleven

iTrader: (0)

Originally Posted by KGB7 View Post
Communists? .. What?? Are you a communist???

If i have a business, and if i cont to take out loans that i cant repay, at some point i will go in to default and the bank will take my business. Banks have a time limit and rules and lots of paper work for them to take you to court with and shut you down.

So why would i take a loan knowing i will never be able to repay it? Thats just stupid! Instead i would cut back on my spendings until i can afford to spend money on more things.

And if i cant get a loan, then i fire people and cut back on my spending till i can get back in the green.

Its economics 101.

There are two ways to make a business run the the black.

Page 1) Decrease expenses.
Page 2) Increase Revenue.

That's econ 101. Sadly, the Republicans haven't bothered to read past Page 1. If you rely upon only decreasing expenses and ignore increasing revenue, businesses shrink.

Since businesses do NOT operate in a vacuum, other businesses will competitively step in and take over market share and eventually drive the business that ignores increasing revenue out of business.

Governments are the same way. If all we ever do is shrink ourselves, other governments will compete with us and take over the global position we abandon.