|
|
|
|
hholdings
New Member
USA
23 Posts |
 Posted - 02/08/2009 : 09:57:03
|
What brought about a turn around in our economy during the great depression was the onset of the war which triggered more spending in support of the war and tax increases to pay for the increased spending. The Iraq war is the first that was executed without a corresponding tax increase. We financed the war with deficit spending. While conditions are somewhat different now than during the depression, the principle is the same for getting us out of the recession. We have to spend more (I suggest at the 1.5 to 2.0 trillion level-yes, Obama's budget is grossly under budgeted and the only way to be able to spend that kind of money is to temporary increase the size of the deficit). I do not personally believe in deficit spending and that belief has been held for a long time as I often disagreed with school mates many years ago while obtaining an MBA degree.
Democrats and republicans are so dug in on supporting their pet projects, our economy may never get resolved. Tax cuts will allow businesses to gear up more to create jobs but, if there is no demand for your business, the tax cuts will be ineffective-I can personally attest to that when I ran my own business. All spending create jobs, some more than others. What we must do is create the environment for business to grow. Spending money, any money, will do that. Saving money will not.
|
|
|
Mycroft
Skeptic Friend
USA
427 Posts |
Posted - 02/08/2009 : 15:01:47 [Permalink]
|
Originally posted by hholdings
All spending create jobs, some more than others. What we must do is create the environment for business to grow. Spending money, any money, will do that. Saving money will not.
|
It's the circulation of money that creates jobs. Spending money is only one way to circulate money. Other ways to circulate money include investing and saving, that last part being what our banking industry is based on.
I am personally of the opinion that spending just for the sake of spending isn't what we need, especially if it creates an anchor of debt that will only drag down our economy in the future.
I believe our economy will get much worse before it gets better. |
 |
|
|
Dave W.
Info Junkie
USA
26022 Posts |
Posted - 02/08/2009 : 20:09:16 [Permalink]
|
| A person's savings or investments aren't included in the GDP, until the bank or company saved or invested in spends the money. In the current economic climate, banks are also hoarding cash, to reduce the amount of leverage they have, and so savings are doing nothing to create jobs, right now. |
- Dave W. (Private Msg, EMail)
Evidently, I rock!
Why not question something for a change?
Visit Dave's Psoriasis Info, too. |
|
|
|
Grayven
New Member
19 Posts |
Posted - 02/12/2009 : 20:01:45 [Permalink]
|
| It could be that the great depression corrected because enough time passed and enough behavior changed for the cause of it to die. |
|
|
|
 |
|
|
|
Spending and Tax Increases Solved Great Depression
