Relax, the end isn't nigh - 2012

[Avinash_Tyagi]

ironman said:

Avinash_Tyagi said:

   

No, actually its covered by deficit spending and tax revenue, which is sustainable in the short term, other countries continue to cover our deficits, and will for the next decade or so, as US is still the most important single market WW.  Actually a lot of private companies rely on the government for their funding, government contracts, so you've got it backwards.

Once we get out the the recession and our economy is churning along, at that point we'll need to cut spending and raise taxes and begin paying off debts, but that is a while off.

Actually, many countries are starting to turn their backs on us. So what happens when Obama's government jobs are the majority, The rich business owners will shut down because their taxes will be too high (and let's face it, a millionare can retire early) and the poor ones will go out of business, then who is left to pay taxes? guess what, the whole system comes crashing down, and we ge another recession, only this time, nobody lends us money...what do we do then? Obama and congress are spending way too much, and subsudising too much. Let the free market work and it will rebound, it always does, it's when government gets involved that the process slows down. I say cut spending, stop subsidizing businesses that were irresponsible, lets get our year or so of pain, and get back to living life.

Taxes aren't going up in the short term nor will government jobs ever become the majority, so you can stop with this fearmongering, the number of jobs needed to be lost and then created by the government to make them the majority would be huge, even moreso than great depression level, we aren't even anywhere near that, secondly we are going to continue to deficit spend for years, the reason is that as long as the economy is down, it makes no sense to try and balance the budget, they tried that in the great depression and it made things worse, you don't balance the budget in a downturn, and countries like China are still going to be buying up our debt, so we're ok for that.

 No if we try and let the free market work without government intervention,we'd be in a depression and we'd likely never get out, consumers wouldn't spend, banks and financial institutions wouldn't lend, companies wouldn't hire and would shave off even more jobs or go bankrupt, and prices would fall.  This isn't a type of situation that the free market could fix, in fact its the government action that prevented a depression and is keeping us propped up right now, in a few years when the economy has recovered, and things are going smoothly, then we need to cut back on spending and probably raise taxes a bit, but that needs to wait