| superchunk said: That collapse would have caused a much higher number of businesses, including the big automakers, to also collapse and *maybe* some would have just shrunk in size but most would have gone the way of Circuit City. (just like what happened ..... GD) These thousands of businesses lost would equal millions of jobs lost (GD) which would have also multiplied the effect of people losing homes (GD) which would also cause more banks to fail (GD) and so on. |
This is where we disagree. I look at it as Bush and Obama are trying to keep a bomb from going off, that has already exploded.
What the government is trying to do, is fix a problem they can’t fix. The unemployment rate is unaffected my government involvement. The GDP is unaffected by government evolvement. The stock market has been unaffected by government evolvement.
While it’s sad that all those things will happen, regardless of what you do, all those things are going to happen. The best way to reduce the negative long term effects is to hit rock bottom as fast as you can, and start recovering.
What government is doing, is just prolonging the inevitable, and the longer it takes to hit the bottom, the worse it is. Not only that, they are getting there by spending money we don’t have in a debt based recession. This means that it’s possible we will sink even lower this way then if we did nothing at all.
Oh, and the problem with the GD, was tariffs done early in an effort to price fix. All economic models agree that to get out of a recession, prices have to fall (they just disagree on if government should force them to fall). Hover didn’t make the problem worse by doing nothing. He made the problem worse by trying to fix it in the complete opposite way then what was needed.
Oh, how history repeats itself.
