Why the recession is not gonna be over anytime soon

[Avinash_Tyagi]

NJ5 said:
I do understand, we keep coming back to the same point, which is:

So your point is that all the consumption money comes from the government, and people are still as indebted as before. What happens when Uncle Sam's tap gets turned off? People's problems are still as big as before, and the government and taxpayers are poorer.

Tjhe problem is you're making flawed assumptions there, first the liklihood that the US's tap will be shut down any time soon is remote at most, no the US is still the most important single market in the world and will be for the next decade or so, so that won't happen, secondly that people will still be as poor and indebted, consumption is down because people aren't spending as much, meaning they are becoming less indebted.  They are still spending, just not as much, that reduced spending is going into their debts and savings, meanwhile government is working to stimulate production and employment and eventually consumption.

As for the Stimulus plan chart, even the most optimistic economists were saying that that chart was too rosy when it was released NJ5, its called spin, of course the white house wasn't going to tell people that unemployment would be around 10% no matter what.