The Economic Cycle

Firms employ workers to produce goods and services.  Workers are paid money for producing the goods and services.  Workers spend their money to buy the goods and services that firms produce.  The firms now have the money they received from selling their goods and services. This gives them the means and incentive to hire workers to produce more goods and services.  This brings us back to where the cycle started.

When this cycle is broken, people lose their jobs and the economy moves toward a recession.

On September 11, 2001; the cycle was broken.  People reduced their purchases of plane tickets and related items: hotel rooms, restaurant meals, taxi rides, etc. Workers in those industries lost their jobs.

In an effort to prevent this cycle from being broken, on September 20, I sent the following email to President George W. Bush, Congressman John Linder, and Congressman Mac Collins:

BEGIN EMAIL
1.  The airlines need financial help.
2.  The hotels need financial help.
3.  The restaurants need financial help.
4.  Aircraft manufacturers' will suffer from canceled orders.
5.  Convention businesses need financial help.
6.  Businesses are cutting expenses by reducing air travel.

Giving money to the airlines will not be a stimulus to get people to do things.  To get the economy moving, introduce a bill to authorize the federal government to pay for all airplane tickets within the U.S. for the next 60 days.  Require the travelers to stay at least 72 hours in the city they flew to before they can fly back.  The travelers will spend their own money while they are in the traveled-to city.  This provides the airlines with some much needed money, but it does much more.  This keeps airline employees working.  It keeps hotel employees working.  It keeps restaurant employees working.  It is a much, much better solution than just giving money to the airlines.   It is better than providing loan guarantees.

A person may be reluctant about spending $200 dollars of their own money to travel on an airplane, but their security concerns will not be high enough to keep them from traveling at the taxpayers' expense.

END EMAIL

They did not enact such a bill.  Workers continue to lose their jobs and further slow the Economic Cycle which causes other workers to lose their jobs.