HappySqurriel said:
It could take 50 (or more) years before Americans were truly living within their means; but after 10 to 20 years the economy can grow enough so that people’s standard of living is higher than it was during the bubble even though they continue to live below their means. Hypothetically speaking the government could help with this, it’s just not likely that they will help with this. Much like taking out a loan to pay for a valuable education, the government could spend money on projects where the direct financial benefit was greater than the initial investment; and the recurring benefit was greater than the maintenance costs. Essentially, if the government produced something of value which required a comparatively low continuing investment to maintain the benefit the economy will recover more rapidly. Unfortunately, most government spending is directed towards projects with little economic value, projects with maintenance costs above their recurring value, and/or towards paying people to add no economic value to the economy; and (as a result) the economy is forced to recover far slower than it would. |
The Defense Budget spending needs to be drastically reduced. Slash the Defense spending and bring the troops back. Trillions of tax payers money has been wasted on two wars in the Middle East. Pension funds have been raided to fund these Middle East wars. Still chasing ghosts in the desert for almost 10 years and will continue on forever.