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CNN Fareed Zakaria GPS July 15, 2012



liberals, who say the economy is suffering from insufficient demand. that is, people in businesses are not buying things. the only cure is for the government to step in, spend money, and create demand. on the other side, conservatives argue the problem is not weak demand but obstacles on the supply side. businesses and people will spend if vithey re in an environment that requires them to do so, reducing taxes, increasing regulation. in general i accept that a country needs a structure of taxes and incentives that reward growth. but beyond this rhetoric, what specifically would help right now? one of america s best businessmen has an answer. fred smith, the founder of federal express, argues that the key to job growth is stimulating private spending on capital goods and services. there is only one stat sthistict is almost 100% correlated to job creation, he says, private investment in equipment and software. but what makes companies spend on equipment and software? is i ....

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CNN Fareed Zakaria GPS July 15, 2012



on the other side, conservatives argue the problem is not weak demand but obstacles on the supply side. businesses and people will spend if they re in an environment that requires them to do so, reducing taxes, increasing regulation. in general i accept that a country needs a structure of taxes and incentives that reward growth. but beyond this rhetoric, what specifically would help right now? one of america s best businessmen has an answer. fred smith, the founder of federal express, argues that the key to job growth is stimulating private spending on capital goods and services. there is only one statistic that is almost 100% correlated to job creation, he says, private investment in equipment and software. but what makes companies spend on equipment and software? is it more orders from their customers, or a better climate for business investment? smith argues the latter. he argues that businesses should be given more incentives to invest and create products. he wants ....

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