Arraya, I don’t see the disaster. Europe rose from the ashes of war. They can deal with a financial crisis.
It’s like going to college and incurring debt thinking that you will acquire better skills for more productivity and higher salary to pay back the debt. I would be silly to say, “I’m not going to college because I can’t be sure to pay back the debt, so I’ll be content to plug along.”
Recessions create unemployment and idle human capacity. The government should step in and help people retrain and offer them incentives to participate in economic activity.
I’m not proposing that the government continue the spending forever. The future test of leadership will be to cut spending and increase taxes when times are good.
The problem the US is facing now is that we cut taxes and increased spending during the boom years thereby creating a bubble economy. We should have increased taxes and cut spending to build a “savings account” for bad economic times.
We now have a bad recession, so the government should increase spending today to cushion the economy. A combination of tax increases and spending cuts will have to be implemented later when the economy has recovered.
[quote=Arraya]
So, you are saying they can print and take on more debt to infinity wit no consequences[/quote]
No I’m saying that they need to increase taxes and match spending to revenue AFTER the economy recovers. They will need to so proactively during better economic times.
[quote=Arraya]
So, you are saying they can print and take on more debt to infinity wit no consequences[/quote]
No I’m saying that they need to increase taxes and match spending to revenue AFTER the economy recovers. They will need to so proactively during better economic times.
[quote=Arraya]
So, you are saying they can print and take on more debt to infinity wit no consequences[/quote]
No I’m saying that they need to increase taxes and match spending to revenue AFTER the economy recovers. They will need to so proactively during better economic times.
[quote=Arraya]
So, you are saying they can print and take on more debt to infinity wit no consequences[/quote]
No I’m saying that they need to increase taxes and match spending to revenue AFTER the economy recovers. They will need to so proactively during better economic times.
[quote=Arraya]
So, you are saying they can print and take on more debt to infinity wit no consequences[/quote]
No I’m saying that they need to increase taxes and match spending to revenue AFTER the economy recovers. They will need to so proactively during better economic times.
