The Serious Discussion

[korge]

Let's have a chat about serious topics and issues.

Topics can range from any hot button issues that represent our deepest values.

Before posting, please make sure that you can back up your arguement. If possible, cite your sources. Please refrain from any flaming/de-railing. Lets keep this mature and concise.

[korge]

For starters, lets start vague. Ill begin the subject.

Why on earth would the new president of the United States and his administration think that its okay to spend over 1 trillion dollars of tax payer money when they obviously have just inherited over 1 trillion dollars of debt from the previous president, Presidente Jorge Bush.

Now, if anyone knows economics 101 or has common sense, they know that when a person is in hard financial times, they Must cut back personal spending. Obviously, if you are in debt to your creditors, you are Not going to go to another bank to ask for MORE money to help your situation. Instead, you budget your money, you cut "pet projects" that arent needed (for example, you are low income earner, so instead of buying a new BMW on lease, you drive a 1990 Honda), and you begin saving money and storing it away instead of spending it.

Seems as though the government is either filled with a bunch of dolts, or they are extremely evil and know exactly what they are doing. By sacking the US dollar, this pushes the US economy closer to collapse, at which point, will usher in an entirely socialist economy. Seems as of late, that most degenerates that live in lightly socialist states of Europe love the idea of the United States becoming a welfare state.

Your opinions and views on the topic please.

[Bojan]

Simply said, in an economic crisis people usually cut back on spending which results in lower sales which results in more jobs being cut and the economy shrinking even further. With incentives for spending in such times, the cycle can be broken and economy can start growing again.
At least that is the main idea, but how effective such measures truly are is hard to predict since there's no real-world laboratory where it could be tested.

[korge]

Yes, so it is clear than in order to get the economy moving again, money should be put into the hands of consumers so as to spend more and thus results in the economy rolling again. But technically, one must admit that cutting taxes and a managing a more frugal government would have the same if not better effect than printing money. Many economists remember when Bush shipped almost 1 trillion dollars in "Stimulus" checks to people. They know how this will have a negative effect on the economy in the long run.

The head of the European Union said that President Barack Obama's plan to spend almost 2 trillion US dollars was "the road to hell." Even a few honest Democrat critical anylsts in the US are saying that this plan may not even work. If Obama says that it may not work, but we must try something and act swiftly, then I see this as a huge lab experiment that will greatly devastate not only the US economy but the global economy as well.

[Porsche-AG]

Of course tax cuts would be better than printing money. Printing money will just cause inflation, which isn't a solution. But from what I see, tax cuts aren't/wouldn't be used on spending. Instead, consumers put the extra cash under their mattress due to the pessimistic mood the economy has caused.

The global economy already is on the road to devastation, but this is a great wake up call for nations (especially Canada) to find more stable trading partners (Sweden, Finland, etc.) and stop this heavy reliance on the US. The fact that the US dollar is the 'global currency' doesn't help things either.