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FDR got the economy back on track but in 1937, he prematurely withdrew stimulus. This crashed the economy, and it wasn't until the war that the American economy recovered. But why? Because federal spending GREATLY increased during the war, mobilizing all parts of the economy.
If Obama does not introduce new federal stimulus measures, we risk a double dip recession. Federal spending must be cut eventually, but not until the economy is self-sufficient enough not to need stimulus.
FDR got the economy back on track but in 1937, he prematurely withdrew stimulus. This crashed the economy, and it wasn't until the war that the American economy recovered. But why? Because federal spending GREATLY increased during the war, mobilizing all parts of the economy.
If Obama does not introduce new federal stimulus measures, we risk a double dip recession. Federal spending must be cut eventually, but not until the economy is self-sufficient enough not to need stimulus.
A serious dilemma indeed. "Stimulus" is not a popular term in America right now. Where did the money go? people are going to have to stop trusting the Fed Gov't and just take a chance.
the nytimes is wrong, FDR did NOT get the economy back on track, since all the spending was government spending, and WW ll did NOT end the depression. it was truman that cut taxes to spur on private industry growth that ended the depression.
FDR got the economy back on track but in 1937, he prematurely withdrew stimulus. This crashed the economy, and it wasn't until the war that the American economy recovered. But why? Because federal spending GREATLY increased during the war, mobilizing all parts of the economy.
If Obama does not introduce new federal stimulus measures, we risk a double dip recession. Federal spending must be cut eventually, but not until the economy is self-sufficient enough not to need stimulus.
Hint-
Federal spending has never worked in the history of the world to stimulate an economy out of recession. The stimulus failed here, as it always has. There WILL BE a double dip recession, as Obama is set to increase personal income taxes and corporate taxes in 2011, thus insuring a "double dip" recession. The economy will turn around when taxes are cut, faith is restored, and Obama is out of office. He was an expensive lesson for the nation- hopefully we can recover from his idiocy.
I disagree. I think the link I posted and my brief summary of it show that vastly increased federal spending really mobilized the economy in 1940.
The true risk of cutting spending is not even a double dip, but worse, a deflationary spiral. A double dip we can get out of. A deflationary spiral lasts a decade.
I disagree. I think the link I posted and my brief summary of it show that vastly increased federal spending really mobilized the economy in 1940.
The true risk of cutting spending is not even a double dip, but worse, a deflationary spiral. A double dip we can get out of. A deflationary spiral lasts a decade.
i will admit that FDRs spending blunted the impact of the depression, but that is all it did. it did not energize anything as private industry was not hiring, and the people were not spending, only the government was. the people were saving their money and paying off their debts. the only good thing to come out of FDRs spending was that we had improved the infrastructure greatly, which was going to prove to be a good thing during the war years, and shortly after. but if taxes remained at war time levels, the economy would not have recovered like it did.
Great idea, spend more borrowed/printed money we don't have so the politicians can fund some more moronic pork projects that do nothing to spur the economy, all the while we mortgage our children's futures.
I disagree. I think the link I posted and my brief summary of it show that vastly increased federal spending really mobilized the economy in 1940.
The true risk of cutting spending is not even a double dip, but worse, a deflationary spiral. A double dip we can get out of. A deflationary spiral lasts a decade.
"Stimulus" spending (then and now) only prolongs the inevitable pain and economic corrections while signficantly increasing our debt. We are already at the precepus of the double dip. Housing and Commercial real estate will not recover for at least 3-5 years and all the government did with their homebuyer refund was to create a second bubble. Pensions for union workers and public employees are underfunded, states are near bankruptsy as Obamacare is poised to place tens of thousands more in each state onto the rolls of Medicaid (state funded).
I disagree. I think the link I posted and my brief summary of it show that vastly increased federal spending really mobilized the economy in 1940.
The true risk of cutting spending is not even a double dip, but worse, a deflationary spiral. A double dip we can get out of. A deflationary spiral lasts a decade.
Exactly what do you think the end result of printing money and the Fed monitizing our debt will be?
Clue: Monetary deflation and inflation of the costs of goods and services. Why does food come in smaller packages than it did 3 years ago and cost nearly double? Your dollar is worth less.
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