Posted on 01/26/2010 11:28:42 AM PST by all the best
A year after a nearly $800 billion stimulus package was passed, the U.S. economy still finds itself mired in mediocrity.
Economic growth is stagnant, unemployment remains higher than almost any time since the Great Depression and millions of Americans are upset that trillions of dollars have been committed to numerous government bailout programs with no improvement of the economy within sight.
They question, rightfully, where this money is going and why it hasn't been as helpful as the government has claimed.
The problems with stimulus packages are manifold. The primary reason they fail is because they do not address the roots of the problem. If you are unable to identify the cause of your problem, then your solution is doomed to fail.
In the case of the current economic crisis, it had its root in loose monetary policy and easy credit that skewed the allocation of resources within the economy.
Combined with other measures to promote home ownership, these easy money policies caused a massive housing bubble. Money that would have been put to other uses was used to produce raw materials, hire workers and loaned to homebuyers, all while home prices spiked.
The boom was unsustainable as many prognosticators pointed out during the housing bubble's peak. But the damage was done, and now that the bubble has burst, we need to stand back and allow the mess to unwind. Yet the government does everything in its power to stave off true recovery and is attempting to re-inflate the bubble.
Rather than allow prices to fall so that the housing market returns to a sustainable level, the government does everything in its power to try to keep housing prices elevated.
The reasoning behind the stimulus package was that underconsumption was to blame for the collapse of the housing bubble and...
(Excerpt) Read more at cnn.com ...
How unexpected...
Economy flounders because of the stimulus.
CNN: “Economy flounders, despite the stimulus”
English translation: “Economy flounders, BECAUSE OF the job destroying fake stimulus”
Fixed it.
Economy flounders because of a lack of faith in our current ‘leaders’ socialistic, redistribution of wealth, nanny-state agenda.
Mark Steyn had a caller on the Rush Limbaugh program, Tuesday, that suggested that when Obama is making one of his assertions that are silly on its face, they should burst out with thunderous laughter. For you see, it IS a joke, however unintentional, and Obama just does not have the capability to shift in the middle of one of his orations from didactic to stand-up comic. So if he gets what he believes to be inappropriate laughter, he is certain to get flustered, and once flustered, he may not be able to get back on his pace.
Just think what shape the economy would be in if we had the same high inflation (14%) and high interest rates (21%) of the late 1970`s and early 1980’s. My guess is Obama’s fiscally insane policies would have driven the entire world into a decade long depression. Looks like we'll have to live with a decade long recession instead.
buh buh buh but.....the Valeria of Jarrett was on Meet the Press Sunday and said that Obama has turned the economy around!
WE have loads of faith in the socialistic and redistributive powers of Obama. Thats why I am sitting put. in the do nothing mode. Whatever I earn will be hit hard. The capital? Will be hugely at risk.... until the marxist/jihadist is gone.
“Economy flounders because of a lack of faith in our current leaders socialistic, redistribution of wealth, nanny-state agenda.”
Yes, plus their arrogant narcissism and presumptuousness
maybe it’s not because of the stimulus? Maybe it’s because of the regulations and the fear that if you become too successful, Obama’s czars will punish you
“maybe its not because of the stimulus? Maybe its because of the regulations and the fear that if you become too successful, Obamas czars will punish you”
I’m sure that is throwing cold water on potential business ventures.
Check this out.
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