Quote:
Originally Posted by CaptainCrunch
Running huge deficits will cause inflation in the long run.
There's no point in stimulis to economic sectors that need to be made more efficient and competitive in the global and national economy.
For example, until the auto industry brings their labor costs in line and begins to produce cars at better costs and with better technology then throwing money into it is useless.
If the American's stop buying our lumber due to their support of their own industry, then there's no point in throwing money into it until becomes more competitive.
This strategy of blindly throwing money at business to save jobs in the short term is the wrong strategy, at this point in time you create programs that create training and new jobs in new sectors with potential to replace the old ones.
I hate to see our dollars going to support unions, and union positions where these people are massively over paid or given unrealistic benefits.
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In theory this all makes sense. But its the whole "never run a deficit because governments get addicted to them" issue for me that causes trouble. I think that governments do have a place to stimulate the economy when its in the position its in. This doesn't mean that they should interfere with business directly, but they should be doing something to stimulate confidence in the average consumer.