in the last month or so i have been hearing a lot of liberals saying demand creates jobs...?

For 30 years now, since the Reagan Revolution, Republicans have believed in 'supply side' economics. Make the rich richer, corporations richer and more powerful, and this will create good-paying jobs that increase demand. The whole idea has been a spectacular failure. All it's done is to concentrate wealth more and more, and between you and me I think this was the real purpose all the time.

The liberal idea is to raise the standard of living of working people, rather than just concentrate on profit for profit's sake. This increases demand so corporations can do better. Trickle-up instead of trickle-down.

What if Obama, rather than bail out the banks directly, had given the people with 'toxic' mortgages some money to pay them off. The banks would still have gotten their money, but hundreds of thousands of people wouldn't have lost their homes. It would have cost the same but consumer confidence would be higher and the economy would be healthier than it is now.

Demand = desire to buy + the ability to buy.

In poor/bad economic environment, the ability to buy would be lowered as the dollar shrinks or people hoard more (for the safety of rainy days) and these has a direct impact on DEMAND. *The poor/bad economy could be caused by bubble economy and when the bubble burst, a substantial number of people suddenly become poorer, as in the 2008 financial fiasco. [assets were inflated by as much as 50% to 70%, and when the bubble burst, millions lost their savings or substantial amount of money].

The vicious cycle may continue, as less DEMAND forces some companies to cut back on production and hence the more jobs losses. More jobs losses (on national aggregate) further push down the DEMAND curve.

That's why economic tools as suggested by Keynes is to STIMULATE the economy during depression or prolonged recession by government spending. The government spending (roadworks, forestall firing of teachers, firemen, etc, etc) serves to put a DAMPENER effect of jobs losses (for private companies).

i understand! And basically think of of the recent nursing and ancillary scientific positions which would be developed whilst great numbers of individuals finally end up with one style of nutrition poisoning or the different! on the different hand, there may well be an incredible style of regulators out of paintings, so it is going to possibly no longer finally end up with a internet earnings. And basically think of how friendly existence would be whilst the debt creditors are not any extra regulated and can deliver human beings to interrupt your legs in case you do no longer pay!

what? the only difference between a liberal and anybody right wing is basically their personal views, on abortion and gun control

Well, if you're not employed, you do without things. So yes, demand is affected. Duh!