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|Haven Of Wiidom > Rantings and Ravings > Political rant|
|Posted by: Jailer411 Feb 10 2009, 11:48 PM|
| The reality is that no one truly knows due to the nature of our current recession. The old mantra of tax cuts as sure fire stimulus flew out the window last year. Our recent prescriptions for sustained economic growth had been to increase consumer spending. Recent statistics indicate that consumer spending represents roughly 70% of our GDP. The problem is that putting more money in consumer hands right now would have a very temporary and possibly ineffective result. Due to the sluggish housing market and record personal debt ratios, simply putting more $$$ in consumer hands may see that money vanish in paying off Capital One cards or mortgages. None of those choices stimulates demand that has a measurable effect on GDP. Its not that some people won't spend the tax cut, of course some will. Some numbers showed that lower income folks spent more the rebate than higher income. But did it help? Perhaps it kept the recession from getting significantly worse, but that's hard to measure.
Government spending offers some higher hope, because its guaranteed spending vs. potential savings or non-durable goods spending. http://www.economy.com/mark-zandi/documents/Economic_Stimulus_House_Plan_012109.pdf, from Mark Zandi at Moody's offers some insight on government spending as a remedy to the current recession. Of course, bear in mind this is a predictive document, but the conclusion is promising. Its important to note that Zandi is optimistic that both instruments will have a beneficial effect on the economy, not for just spending. All in all, I think the Government currently sucks. Debate your stand views on this.
|Posted by: Ethan Feb 11 2009, 12:34 AM|
|I do agree with you on the fact that all this happening is crap as well as the sucky government, but I say it has to do with the shipping of jobs overseas which is leading to the loss of money making onsumers....so basically, we're also shipping money overseas.....so if we get this issue resolved, we proably will get to see a significant improvement in the recession.....like the time the Gas prices went back down......at least for a while.......|
|Posted by: Jailer411 Feb 11 2009, 12:39 AM|
Were not shipping all of our money overseas. A lot of the money is being corrupted, here in America. We've messed up a lot, and it will take more then a self-proclaimed Stimulus package to fix it!
|Posted by: Pseudonym Feb 11 2009, 12:40 AM|
| OUr current government sucks?
Relax pal, it's only had 3 weeks.
|Posted by: Ethan Feb 11 2009, 12:45 AM|
well, I don't mean all of the jobs.... not all, but many, alot, has been shipped overseas...... and I'm not saying that the package will fix it, it just might make it better on us in the long run despite the massive espenses.........ok, maybe worse but like Obama said, we don't know till we take a chance........we'll have to wait and see........and by the way, the current government, the new one, does suck........
|Posted by: SilverSurfer092 Feb 11 2009, 02:51 AM|
|I think the new government (the one that has been in office for about a month, not even yet) is going to help out quite a bit. I say the US just turns Socialist. Capitalism never got the US anywhere. It got the Robber Barons places though.|