consumer confusion

anybody else think it's a bit odd that we're told we need to fund social
security because americans can't be trusted to save for their futures,
but every time consumer spending is down we're all supposed to get
freaked out that the economy's taking a down-turn? (remember after 9-11 when bush told us to be patriotic americans and go shopping?) and every time the economy's "down," the politburo in dc pumps new dollars into the economy to increase consumer spending (bear in mind, the increase in dollars actually decreases the value of everybody's savings).

is that a good thing? a couple thoughts:

why is spending down? supply and demand: prices are too high; demand is too low. so either merchants hold on to their inventory until demand increases (which could put them out of business), or you slash prices (which could also put them out of business). since we have a total aversion in america to 1) consequences of our actions and 2) directly regulating prices (that would be socialism, ya pinko!) we just inflate demand by increasing "buying power," i.e., pour new money into the economy. "rebates" for all, including non-tax payers!

this market intervention empties inventories, and we all calm down because consumer spending is UP UP UP! and people are selling stuff! so what's the problem with that? first, because we don't let the market adjust, the prices stay high, and the ants who've had the foresight to save get screwed over by the grasshoppers. that's inflation. second, if you don't save today, you're going to spend less in the future, which means that we'll need another "economic stimulus" package so that merchants can clear their shelves then, which will mean that you'll save less then, and spend less in the future of that future, which means we'll need another stimulus package. it's turtles all the way down. and we're wall-papering our houses with $100 bills.

rrraugh! saving... good! spending... good! grog like peanuts!