Quote:
Originally Posted by Calgaryborn
Are you sure? Obama's big spending last year didn't improve the economy and this year with far less to play with the economy has niether crashed or improved.
The bond rating company doesn't seem to agree with you either. They see a need for the government to control spending and will down grade the US rating if they don't.
|
The goverment is a huge employer, if it cuts its emlpoyees to make ends meet, a laudable goal by the way, then they cant buy houses cars etc, if they cut social security than a vast swathe of the US who spend all their money on rent food etc have to cut back, this is a basic economic function, the effect of this is to drive tax revenues down, which further spurs spending cuts and can lead into a death spiral.
You have to differentiate between when goverment gives money to banks and when they employ people, whole different economic effect, you also are assuming goverment spending last year didn't work because everything isn't rosy now when for all you and I know if Obama and Bush hadn't shoveled money out we might be in a far worse state, what if every city in the US turned into Detroit?