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Mike
Re: You have a point, here and there -
Thu Aug 18, 2011 4:04pm
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People need to spend money to build an economy. They need to spend it on goods and services. When they STOP spending then you have a liquidity trap and deflation occurs. Deflation is very bad, even worse than a double-digit inflation rate. It's a downward spiral that feeds on itself. Governments must step in to avoid deflation. They must unclog that trap. There is no other entity that can do that at this point.

Given that the governments MUST spend money on necessary infrastructure and continue to do so. They can do it now, or do it in the future. However, it makes perfect sense to spend it NOW at near ZERO percent interest and hire the necessary people to do so. That will put more people back to work and grow the economy. The problem you experienced was that much of the money wasn't properly allocated. This, however, doesn't make a strategic stimulus plan less sound.

Obama stepped into a rabbit hole the moment he was sworn in. He inherited a $1.3T deficit, losing 400,000 jobs a month, and the entire globe in financial turmoil. There isn't one person who is going to fix this mess in a hurry. Certainly now with a GOP congress in charge of the purse strings, they have proven yet AGAIN that they are not serious about cutting spending but they want to cut taxes at the same time.

The problem you have right now is that your nation is too polarized. You have a unity problem. You're fighting in a burning house arguing over which fire extinguisher to use and who is going to aim it. Your asses are starting to singe and you're still fighting. Sorry to say, but that's rather pathetic and sad.

We have a Liberal Party and a Conservative Party. Ideologies are different, however, we can still work together when we need to. We have proven time and time again that despite our differences we can still compromise and not hate each other. We are much better off because of that.

  • You have a point, here and there -Lewis, Thu Aug 18 9:37am
    Yes, you have to have a market for the goods and services produced. Production and spending must be synchronized, and whatever is produced must be matched by demand. Government PURCHASING can help -... more
    • Re: You have a point, here and there - — Mike, Thu Aug 18 4:04pm
      • Obama's rabbit hole?Lewis, Fri Aug 19 8:06am
        Yes, he did. And the housing mess goes 'way, way back to Clinton's first term - in fact, it has its roots in LBJ's "great war on poverty" - because of which banks were pressured to write "NINJA"... more
        • It was the other way around. It was the banks that lobbied to strip these regulations. You seem to forget that a good chunk of DC is influenced by corporations. Banks lobbied heavily to Republicans.... more
          • Really?Lewis, Sat Aug 20 8:10am
            No, I'm speaking of pressure applied TO the banks. The pressure wasn't intended to eliminate regulation - it was applied TO the banks to "encourage" them to right NINJA loans. The pressure traveled... more
            • Again, NO pressure to the banksMike, Sat Aug 20 3:31pm
              Banks are public companies that are loyal to their share holders. The banks LOBBIED to have regulations stripped because THEY wanted to increase their bottom line - nothing more. Read up on how much... more
      • Demand, supply, and spending work to help the economy ONLY if the demand is met by production HERE - not China. As I pointed out - we go to a bank and borrow money (via credit card); the bank gets... more
        • So what is your solution to that?Mike, Thu Aug 18 9:55pm
          Do away with free marketing capitalism? Only in times of higher unemployment do people cherish even the crappiest of jobs that they didn't care for when times were good. The cheap crap that many... more
          • Well, I know the LIBERALS' solution -Lewis, Fri Aug 19 7:37am
            It's a 6-point plan: (1) Raise taxes (2) Spend (3) Raise taxes (4) Spend (5) Raise taxes (6) Spend "Increase revenue" to balance the budget? That's another Democrat psuedonymn for "raise taxes" -... more
            • Which liberals are you talking about?Mike, Fri Aug 19 12:33pm
              Where do you get this notion that liberals cannot be fiscally conservative? When defining, you seem to put all the liberals in one box, yet all the conservatives get to belong in many boxes(social,... more
              • If all else fails ... READLewis, Sat Aug 20 8:20am
                Here, "liberal" does not describe or name a political party. I said "liberals", not "Democrats". Of course the (old school Democrats) were fiscally conservative; I was one for 40 years. The Democrat... more
                • Heal thyselfMike, Sat Aug 20 2:50pm
                  The point is you broad-brush the "liberal" label. In a POLITICAL discussion about policy, "liberal" and "Democrat" are generally interchangeable. When you use extreme terms like "communism" to... more
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