I guess I just don't get it!

The more I try to understand our economic situation the more confused I become. I have no problem understanding thousands of people who have worked hard all their lives are losing their jobs every day. I understand why companies are asking employees to cut their hours or agree to a lesser salary so the company can stay afloat. I also understand why our dollar isn’t worth what it once was. I can‘t, however, fathom a billion in debt let alone trillions. . I understand that people are being more conservative with what little money they have and are concentrating on essentials. “So what’s my problem?” you ask.
It goes back to an economic class. The theory being, cost is a result of supply and demand. Another theory being, demand had little significance if the consumer’s ability to pay was limited. That little piece of information seemed reasonable when the professor explained it. Consumers appear to be conserving fuel in the face of government warnings. The price of crude oil is dropping as predicted by my economics professor’s theory. However, the price at the pump is defying that same principle by going up. I think the consumer got the message but the retailers are in denial. My wife and I went out to eat last evening with some friends. We use to go more often but now select our times. After all, the least we can do is our small part in stimulating the economy. Much to my chagrin, I realized my economic professor’s theory is not what it appeared. I perused the familiar menu and was shocked to find a substantial increase on every item. Did somebody miss the fact that people have less money? Did someone fail to educate the owner that demand is waning on luxuries such as eating out? Have these folks been totally ignoring the news concerning our economy or are they just trying to make as much as they can before the economy crumbles completely? (I think the term is GOUGING in some circles). The Auto dealerships are crying the blues while advertising they are almost giving cars away in order to get them off the lot. If you compare today’s prices to those of two months ago, the only difference is the advertising. It appears you are getting the vehicle cheaper but they now include a down payment or trade in value as part of the advertised BIG savings. You may save a few bucks. I doubt it will be what the LARGE totals seem to indicate. The sad reality is the only place you really get big savings is those businesses who are liquidating due to bankruptcy.
Our new President is intent on spending his way out of this mess. I honestly believe he is a smart man but he must have failed history. If he reads his history book, he’ll see that this strategy has failed every time. I can only hope he understands the solutions for short-term recovery and long-term recoveries are mutually exclusive. The only way the economy can recover in the long run is to stimulate businesses who hire people who will then pay taxes and buy things from other businesses who hire people who will pay taxes and buy things…oh well I’m sure you get the picture. As bitter a taste as it might leave I some of your mouths it may even require tax breaks for business owners in order to give them an incentive to support free enterprise. Oh, and by the way, I know I’m being fussy here but where does a government who is already trillions of dollars in debt find someone willing to invest another trillion or so to support their failed system? Isn’t that what some in the auto industry expected?