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Didn't we learn anything from our credit downgrade? Stimulus is the wrong direction to go at this time no matter what is happening in the economy. What happens if there is another stimulus, our deficits increase again and S&P may downgrade our rating another notch! This means even higher interest payments which increases the deficit again..a vicious cycle. Are our leaders in the right mind? It seems to me that the Obama-Bernanke just wants to throw loads of money at the problem and are praying something sticks. Is this the way to solve our problems?
Bush's Stimulus package was a failure, I agree. We need a stimulus package that cuts taxes... not pumps green paper into the economy.
the original stimulas was seen as being incorrect from the start. not enough infrastructure spending, and not enough tax cuts. and some misguided tax cuts. many economists believed the stimulus should have been larger, and that was before knowing what we know now...that the initial recession was worse than we thought.
i would only support a new stimulus that had proper tax incentives and proper spending (infrastructure). then, we'd be spending money on things that we need to in the near future anyways, just moving up the time we spend it. i'd have to take a look at the pieces of the original one again. it wasn't a failure, it just didn't do enough. and you really can't argue (at least not well) that "at least it's not worse". but the reality is, it would be worse without that first stimulus.
There is no way congress is again going to give Obama more stimulus to spend as he sees fit. that is what happened to that promised infrastrcuture and job creating stimulus passed last time.At least Bush's; altho minor in comparison as to amount; got to main street. One would think that Obama would at least introdcue a budget ;hopefully one that congress can take seriosuly this time;and quite the rethoric dream speeches that sound so 1960ish.I mean when you budget is rejected by the senate you party controls by getting zero votes 'you';d think he would wake up.
It seems to me that the Obama-Bernanke just wants to throw loads of money at the problem and are praying something sticks. Is this the way to solve our problems?
Bernake has nothing to do with fiscal policy. He deals with monetary policy. He may fire up the money printers again, but that doesn't put us any deaper into debt. (Inflation is another debate, but that doesn't seem to be a risk in the immediate future, for now.)
The spending cuts need to come from medium to long-term expenses. We should do whatever we can to avoid sliding back into a recession in the short term and extending the payroll tax cut helps. Extending unemployment benefits - though controversial - stimulates demand for goods and services, at the very least. I agree with bradykp in that spending should be on infrastructure projects - things that put people to work in the short term and facilitate commerce in the long term. We should at least have something to show for the money. Taking a machete to government spending right now would be a real disaster for the economy - not in 10 years, but this year. That's what the Tea Party doesn't understand.
S&P can label it whatever they want, U.S. Treasuries are still the safest investment available anywhere. Where else is China going to keep its money?
Bernake has nothing to do with fiscal policy. He deals with monetary policy. He may fire up the money printers again, but that doesn't put us any deaper into debt. (Inflation is another debate, but that doesn't seem to be a risk in the immediate future, for now.)
The spending cuts need to come from medium to long-term expenses. We should do whatever we can to avoid sliding back into a recession in the short term and extending the payroll tax cut helps. Extending unemployment benefits - though controversial - stimulates demand for goods and services, at the very least. I agree with bradykp in that spending should be on infrastructure projects - things that put people to work in the short term and facilitate commerce in the long term. We should at least have something to show for the money. Taking a machete to government spending right now would be a real disaster for the economy - not in 10 years, but this year. That's what the Tea Party doesn't understand.
S&P can label it whatever they want, U.S. Treasuries are still the safest investment available anywhere. Where else is China going to keep its money?
well said. but with the payroll tax cut, i don't like it because it's the 2% from SS taxes right? so, we're not just cutting a tax, we're also further endangering social security. i get why they want to do it, but i just am not sure i agree with it.
i agree about U.S. Treasuries. people will park their money there. S&P can shove it up their...
Didn't we learn anything from our credit downgrade? Stimulus is the wrong direction to go at this time no matter what is happening in the economy. What happens if there is another stimulus, our deficits increase again and S&P may downgrade our rating another notch! This means even higher interest payments which increases the deficit again..a vicious cycle. Are our leaders in the right mind? It seems to me that the Obama-Bernanke just wants to throw loads of money at the problem and are praying something sticks. Is this the way to solve our problems?
k374,
Indeed, almost no one learns. I could say it a hundred times but "debt is the money". Money must always increase in a system of credit plus interest, therefore someone or something must go into more debt. So if you want to do something about it, take out a loan. Seems as though a lot of people don't want to though.
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