Does the USA need a perestroika?

[NJ5]

Rath said:

NJ5 said:

Chairman-Mao said:
Well lets see, the Soviet Union no longer exists and the USA has just survived the worst recession since the great depression and is slowly emerging. I'd say we're doing just fine thanks Mr Gorbachev.

p.s. I'd die for capitalism

Getting out of a recession by stimulating the economy with borrowed money and a high deficit is like solving your personal financial problems by maxing out your credit cards. It may work if you're lucky enough to get a source of revenue to cover up the deficit afterwards, otherwise it just adds to your problems. Of course in the US government's case, the main source of revenue is taxes from citizens, which aren't about to raise to a level which can cover up the deficit.

It's also still very uncertain what will happen to the economy once the stimulus is withdrawn.

 

Personal finances are nowhere near as complex as an economy, the associated problems with going bankrupt are not similar to the problems of a financial system collapsing.

I agree the economy is still uncertain and your deficit is ridiculous, but I don't think the analogy properly conveys the consequences.

In that post I was talking about the attempted solutions, not the consequences of the economic problems.