| mrstickball said: Ultimately, if the government would lower taxes, reduce regulations (whilst streamlining the major ones, to strengthen the needed ones), and simply allow people to create jobs themselves, we would be out of this mess. But instead, many governments like the US simply don't care about the fundementals of our economy, and would rather throw money at the problem, as opposed to fixing it. |
And if this money flows offshore, and causes people outside of the U.S to be employed instead of having U.S jobs created by government spending, how does that fix anything?
The idea that all you have to do is cut taxes, and cut regulation, and somehow it wil fix everything, presumes that progress ALWAYS happens, and what is needed will always show up just in time, because markets are destined to cause this to be so. The reality is that business doesn't exist to create jobs. Business exists to maximize profits, by providing goods and/or services that have superior appeal to the marketplace, and finding ways to cut costs, whether it involves laying off people or not.
There is also a case of needing to see where the minimum spending level by government should be. Would the economy be better off if America had no military and would become subject to easy invasions by a rival nation? Do poor nations in civil war generate wealth?
And yes, the fundamental issues of the economy need to be dealt with, beyond throwing money around. But saying cutting taxes will fix everything is a statement of faith, not a statement of reality. The last administration cut regulation, spending and everything. It failed to create sufficient jobs to keep up with population growth, yet businesses showed increased productivity.
