Teo said:
mrstickball said: ....Because MoveOn.Org is the most intelligent, thought out PAC in the universe, right? Sorry, I'd rather take my economics from a guy wearing a sandwich board than MoveOn. |
Maybe you should take your economics from a... economic class and not a political party.
ECO 101: Government spending is used to stimulate the economy. The Fed exists for a reason, it was created when congress wanted to see our country succeed, not fail for political points.
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I don't take my economics from a political party. I've based my econonomic view by watching and reading many many lecutrers from many, many economists over the past few years.
And having said that, go look at the actual data of government spending on public works projects to stimulate the economy. Many projects are funded, and few succeed. Those that do are always lauded as being proof that stimulus works, but many people fail to note the tens of trillions of dollars that are spent in waste.
I will give you an example: ethanol subsidies. Until a few months ago, our government spent billions of dollars each year by giving $0.50 per gallon to ethanol producers as an incentive to make biofuels. Did it stimulate the industry? Yes. But it also drove corn prices up to a level unheard of, causing the price of all corn products and corn-fed animals to double in price in the past 5-6 years.
The problem with government stimulus is that approximately 600 people decide where billions of dollars are sent each year for stimulus. Because of this, much of the money is malinvested, causing waste and excess which destroys wealth in America. For example, what good did it do for the 2009 Stimulus program to pay $5 million USD to my local town to have about 10 acres mowed, and the road re-paved when it was just done 5 years ago and was in good condition? Would not the money of been better invested by ensuring it was in the hands of 300 million Americans, and their decisions on where investments should go? That is why I am against stimulus: the government has a poor track record picking winners and losers, while private monies can be invested into markets as needed, and is far more flexible and has a better track record.
Additionally, your argument about the fed (and I am unsure what part you are discussing - the Federal Reserve or other areas of the federal government) doesn't make a lot of sense. Our nation's greatest growth in GDP was well before our government became the size it is today. Our nation grew by leaps and bounds when government spending was much lower than today, and we had far fewer safety nets. Government may be well meaning, but I would argue they create many programs for poltical points and in hopes they rectify situations, regardless if the result is achieved. Our 'war on drugs' is proof positive that government intervention rarely works the way as intended - even if you throw trillions of dollars at a problem and incarcerate millions.