TheRealMafoo said:
It's not home economics, it's economics 101 that we apply at home. How is spending more money then you have going to make things better? China and the rest of the world are not buying our debt. This means we must print money. The only way out of this, is to inflate our way out. inflation is a regressive tax, and hurts the poor more then anyone. If the dollar becomes worth 80% of what it used to be worth, you have just taxed EVERY dollar by 20%. There is no tax deduction for that. Everyone pays it. Why are you for a tax on the poor when we are in such economic hardships already? Why are we here in the first place? The answer is as a nation, we spent more money then we had. Why is the solution to spend even more money that we don't have? You like the guy, great. I like him too. But when you hire someone to do a job, and they make things worse, the solution is not to ignore the situation and hope for the best. The solution is definitely not getting pissed at those who are doing something about it. |
I just wanted to expand upon your point a little bit because a lot of people seem not to understand why inflation tends to hurt the poorest people the most ...
For the most part, the more money you earn as an individual the more control over your income you have and the more money you will hold in investments that hold their value. For example, a business owner can respond to increasing input costs by increasing the price of his products/services, a skilled office worker can easily negotiate a raise or find another job, or a union can negotiate a good collective bargaining agreement, but a waitress or retail worker has no negotiating power because they're easily replaced.
With that said, people who make claims that personal finance is dramatically different that corporate finance or government finance are either dishonestly, trying to 'sell' you on something bad for you, or uninformed. In many ways, for the past several presidencies the United States has been run similar to a household of yuppies who have built up a massive ammount of debt to produce the image of prosperity; while there has been measures of success, these are not unlike the profit that is generated by home flippers at the peak of the market. The Obama presidency essentially is starting off with this household after there has been a massive income reduction and has decided to try to maintain this lifestyle by building up massive debts on their credit-cards, and has also taken out a line of credit for a stimulus package which is similar to going to the spa in order to feel better about yourself because relaxed people are more likely to get jobs.
