Posted on 01/22/2009 11:09:10 AM PST by dbz77
Can Fiscal Stimulus Revive the US Economy?
Daily Article by Frank Shostak | Posted on 1/22/2009 12:00:00 AM I Want YOU to Spend Spend Spend
On Thursday, January 8, 2009, US President-elect Barack Obama said,
I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years.
Most economists and various commentators are in agreement. They hold that the US government must sharply increase its spending in order to arrest the economic crisis that could turn into a prolonged slump.
(Excerpt) Read more at mises.org ...
No. Stimulus may provide a short term delay of the inevitable. Been there, done that (Great Depression). And we all know the only thing that brought us out of that was WWII.
Not withoug slashing tax rates across the board.
No
Purely no.
We know that because the decline in the price of gasoline has been a huge stimulus. More evidence is the fiscal stimulus last year which was like trying to stop a tidal wave with a kids pail and shovel. The answer is capitalism but socialists don't like that answer so prepare to be stimulated.
No, but rebuilding our manufacturing base can.
Government Spending more money bring us out of a recession?
No chance. That has never happened.
Permanent Marginal Tax Cuts bringing us out of a recession? Yes, every time it is tried.
So, it depends on which kind of “Fiscal Stimulus” is employed.
Which do you think 0bamessiah will choose?
Is that you, Willie?
This is true in so many ways.
And we all know the only thing that brought us out of that was WWII.WWII was effectively a stimulus package.
Nope, I’m not Willie but I suspect I’d like him if I met him. (-:
short term?
apparently the money won’t be spent till 2010.
tax cuts would be much faster
If you want a short course in economic thinking whereby you will learn to quickly parse anything someone says about stimulating the economy or directing it read Economics in One Lesson by Henry Hazlitt. It is short, plain English, and was required reading for my 4 children, once in middle school and again in High School. Now, as young adults when they are tempted by some Utopian scheme their brains automatically go into if-then mode and they see the economic fallacies and do not get sucked in. Making your kids read Hazlitt's simple book is pretty good insurance that they will not get co-opted by University utopianism even when they get intellectually rebellious. That dataset installed in their brains will bring them back to earth.
Excellent example w/ the bread baker...
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
-~~Ludwig Von Mises
Tax Cut’s are great for long term growth and we surely need them, but the fact is you can't stop a recession no matter what you do. It's like trying to stop the sun from rising.
Recessions are beneficial in the long run. If the Government does not meddle, firms and individuals tend to cut a lot of fat out of their bottom lines and lives and emerge out of the slump in a better position and more efficient then when they entered it.
Actually what I should’ve said was ANY stimulus’ effect will be VERY minimal and that’s it. We need huge budget cuts and huge tax cuts. And we need them now. “America’s Great Depression” by Murray Rothbard is a good read. Keynesianism is a huge failure. This current mess proves it.
okay. I forgive you.
Its a good article, btw
Fair point. As long as we have a corporate tax rate thats second only to Japans, we tie one hand behind our back.
Which tells you why the Japanese build manufacturing plants here, but nobody else does, btw.
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