Yeah its a problem alright. I am not saying I agreed with the bailouts, but I understand it. The banks got themselves jammed up and the system needed to be cleared and lubricated so that money could move again. The dollar “broke” as it were, with people selling dollar deposits for less than $1. It was a bad way.
But then they went and did QE, QE2, QE3 and so on. Now this had many motivations, some of which was to boost the economy - to avoid deflation which this central bank fears more than anything. They also wanted the stock market to go back up because everyone’s savings is tied up there like it or not. They also wanted housing market to recover for similar reasons.
But if they were believers in “trickle down” then they probably aren’t anymore. The numbers are all ‘damned lies’ so to speak. Unemployment is down, but it is down by moving millions and millions into disability and welfare or early retirement. Dollar is strong, but mostly because every other currency is worse. They say we have 2% inflation but this number has been revised just about every quarter since 2008 and now with oil prices and commodity prices sunk input costs will drop and this will feed some profits in some areas but that just means prices for finished goods will stay competitive and that means inflation is unlikely.
The QE money went to banks, insurers, fatcats. Any regular Joe try to get a home loan since 2008? Its a little easier now but it has been very difficult. If you want the economy to grow you need inflation and if you want inflation you have to drive demand for goods and services. To do that the people need cash. Welfare, disability and early retirement income is not enough to stimulate the economy and anyway it it requires bleeding the cash off the productive to give it to the unproductive. As a closed loop system it cannot possible benefit the economy, except for the fact that FedGov prints or borrows $1 trillion more each year than it collects. That could cause inflation but isn’t. So imo the magnitude of the problem is clear: With QE and deficit spending we still have very low or no inflation. That is bad news. Its almost a liquidity trap.
There are at least 2 ways out. 1) give every taxpayer cash or 2) cut tax rates significantly (basically the same thing, just difference of degree and progression).
See my post #24.
I also think the reasons we are importing millions of low (or no) skill people into this country include:
1. They are expected to create a permanent Democratic (leftist) majority.
2. They will become clients of the Entitlement state. So the Government will just GIVE them $$ to buy stuff they don’t have. Thus stimulating the Economy. That will surely not help the US taxpayer, but it will help the Corporations (like Walmart, GM, Proctor & Gamble, etc).
I hate to sound like a Commie, but it does seem to me that the Corporations have switched sides. At one time (maybe as late as the 1970s), it was in their best interest to have a stable, productive population. Now, they just want people to buy stuff, without regard to who those people are or how they get their $$.
How would giving people cash, or cutting taxes, reduce the 20 Trillion in debt?
I’m wondering about the effect of Trump (if he gets elected) imposing a “dedicated reduce the debt tax” of say 2% on every big ticket item imported into the U.S. In effect, Japan and China would then be paying themselves back.
Then, do the same with sales. Meaning impose a National “dedicated reduce the debt tax” of 1% on all sales in the US except groceries and prescriptions.
Then, all the foregoing only be done in tandem with:
1. Eliminating, as in closing completely, several major departments of government.
2. Constitutional Ammendment for balanced budget.
3. Term limits.
4. Judiciary reform.
5. Flat tax.
6. Former federal legislators being barred from EVER becoming lobbyists.
These six are just a sampling. There are many others.
At some point, the ONLY cure for what ails us is a balanced budget each year and putting the existing debt on a downward curve.
To accomplish the foregoing will take a massive re-education of the 47% that put this bastard in office........twice.