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Reader's forum: Obama's plans will fail
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Spending on credit is unsustainable. It will ultimately lead to complete collapse in the long run.
Spending on savings is sustainable and will ultimately lead to prosperity.
Spending on credit, while harmful in the long run is easy right now. It is the path of least resistance and makes us feel good today.
Spending on savings is a tough pill to swallow in the short term. It will ensure a contraction in the economy both in consumer spending and job growth.
So we can do what is easy now and ensure economic collapse in the long run. Or...
We can do what is tough now but ensure long term economic viability.
This is really easy. Of course, we do what is easy in the short term, devil may care about what happens to our future. That is the motto of Washington DC. We have officially adopted the motto of the 60's hippie generation: If it feels good, do it!
The most basic economic lessons tell us Obama's plan won't work, just like Bush's didn't.
Bush did his stimulous plan and here we are. Now if we will only spend more it will magically work this time.
The economy is wisely contracting as tens of millions of people are forced to live within their means. They are adjusting spending and in time will go back to the malls. This time more things will be bought with saved money, not money promised for the future.
We are watching reality tell us that Keynes was wrong. The hall mark of Keynesian economics is that of defecit spending. We hear this in the easier to understand version: Debt doesn't matter.
Tell that to the world right now!
The only people who really believe debt doesn't matter are either bankers who make money off of debt, or politicians at every level who get political clout off of debt.
Like a dog to its vomit!
Businesses need to have incentives to continue to stay in business.
Example, I went in to purchase a new truck at the end of 2008, I was told that if I purchased said truck before the end of the year I would be able to write-off $20,000 in taxes for my business. But, if I waited to purchase in 2009 I could only write off $6000. Why the difference? is this what we can look foreward to in the comming Obama administration? I hope not.
It's funny how conservatives like to blame Congress for the state that we're in. They completely ignore that it was Bush's policies that got us here.
Why is Obama's policies supposedly more important or influential than Bush's now? If Obama fails, can we just blame Congress as Conservatives do?
People I guess forget, for 6 out of 8 years, Bush had a Conservative controlled Congress. He passed through whatever he wanted. Including tax cuts, which HAVE NOT benefited "Joe Sixpack" and "Hockey Mom."
We've had 8 years of proven FAILED policy. Allow now, Obama do try and fix the blunders and mistakes of the President that clearly deserves such a low approval rating.
The letter writer is wrong, Obama's plan is not like Hitler's (at least not yet). Obama is following FDR's plans, which, depending on what you read, lengthened the Great Depression by 7 years.
Oh... wait a minute...
Never mind.
Look what his ideas have done to America.
Sending stimulus checks to taxpayers won't work - because most taxpayers will use them to pay existing debts and bills rather than spending them to create demand. The bailout of the banking industry might have worked if our economy wasn't in a liquidity trap where interest rates are at or near 0%. Banks have money - they aren't loaning it out since there's no money to be made at 0%.
Tax cuts and other incentives for businesses to invest won't work since demand is insufficient to purchase the products businesses are already making. Put it another way: the inventory of unsold new cars sitting on lots is already huge, so why add more new cars no one is going to buy? Automakers aren't going to build new plants to build new cars when they can't sell the cars they've already built. It's the same for every industry.
Unfortunately, I'm afraid that's what we're going to find out over the next few years.
Oh pleeeeaaaase.............
At at time when we should be pulling together these divisive right-wing freaks continue to try to polarize us even further than usual.
Had there been a conservative controlled congres, we would not have the mess of Prescription Drugs being added to medicare. We would have had some regulations put on Freddie and Fannie to reign them in. Government would have shrunk in size rather than grown.
Please don't get conservative confused with Republican.
Interest rates were keep low. Alan Greenspan has said he keep interest rates too low to keep our economy from tanking during Bush's rein. Cheapo money fueled scams.
Why become informed? Be lazy. Only listen to Talk radio and Fox. All the time you were casting stones at us liberals conservatives were stealing us blind.
Saying that a program will fail, prior to program even being implemented, is like telling a child will fail regardless of how that child is doing. This only plants the seed so that if failure occurs, the speaker (parent, relative, or acquaintance saying the child will fail) can say: "See, I told you. That child is a failure and won't amount to anything."
This is simply a complete lack of self-image or self-confidence on the part of the speaker. Since the speaker is afraid of failure, he/she trys to place that burden on the child or object of their criticism.
Supporters of the current administration (the few that remain, anyway) secretly want Obama to fail to draw attention away from their own favorite's (i.e. Bush's) failures. This is infantile, of course, and is in the same vein as cutting off one's nose to spite their face. Somehow their self-respect finds renewal in criticism others before there is really anything substantive to criticize.
How incredibly stupid!
Just what have the neocons won?
They lost public prayer in school.
They lost censorship of ... everything.
They lost overturing Roe v Wade.
And these losers congregate around the far-right talk radio shows believing they have some sort of power over America.
LOL!
On the other hand, Liberals always wanted Bush to fail despite the suffering that would cause to their families. liberalism is a mental disorder! MS
You libs don't understand that Bush was just a lib in sheeps clothing. Now we have Bush and Obama both promoting the same idea, that being the urgency to spend taxpayer money they don't have, and don't have the right to spend liberally, like they do. They are crying about the URGENCY to spend the bail out (politico power grab) NOW!!!
We tried to warn them 8 and 4 years ago but their weird alliance with Rush O'Hannity told them what to do.
And now they are whining like babies refusing to accept any responsibility for the sad situation America is now in.
Guess what?? You better HOPE Obama's plan works. Why on earth would you want him to fail? Just so you and your radical repub friends can be right? Sounds an awful lot like cutting off your nose to spite your face.
You are absolutely correct. I should have written a Republican controlled Congress and not a Conservative.
I'm interested to understand as to why some people feel that by giving businesses tax cuts, that "trickle down" effect will actually happen.
It seems to me, while under so many economic problems right now, that many businesses horde the money and it stays at the top. For example, if we give AIG 10 billion dollars in tax cuts, what guarantee will us, the tax payers have, that the 10 billion will be used for:
A. Job Creation
B. Cheaper Prices for us
C. Better service
And not just used to fatten the already overflowing wallet of some CEO?
Until we find a way to manage the money we give out to corporations, we shouldn't give them additional tax breaks at all. Sorry Cooperate America, but you've lost our trust with your foolishness. Until you gain the confidence of the Consumers back, I want all tax breaks to be kept with the working class of this country, which is what truly drives this country.
We don't need anymore rich CEOs to rip us off even more.
@ Anonymous: 12:26: The fact that Bush double-crossed the conservatives just as his Dad did, is not a surprise, as another poster said, Bush is a lib in sheep's clothing. Conservatives have never agreed with Bush II economics other than tax cuts. Government perscription, deficit spending, and the baloney bailout, are all Democrat lite. The Republican party sold it's soul after Gringrich. That doesn't mean that a conservative is going to go for the socialist agenda of the demos. We haven't had a candidate in years. I'll accept responsibility for a great deal of economic success over the past 8 years, and a win in Iraq, now will you step up to the plate when the government coffers are bare and we have rampant inflation, or will you blame that on conservatives?
If I were president I would let the free market take care of this recession, lower tax rates across the board, level the playing field with partners around the globe. But, we now have a true socialist in charge of the executive, legislative and soon to be judicial branches of our govt. Welcome to the soon to be third world country of the USA.
Obama being compared to Hitler now. That is a new one.
The need for new tax credits to create jobs. Same old Republican drivel we have heard since 1980 when Reagan took over. What has 28 years of Republican deregulation and tax cuts for the wealthy gotten us? A huge debt and the highest unemployment since Reagans time.
Last weeks numbers said the unemployment rate was the same now as 1993 when we finished the Reagan Bush years.
And to KM, when you say "Businesses need to have incentives to continue to stay in business" isn't making money to support the owners incentive?
I thought Conservatives liked the free market? Why should anyone need an incentive to stay in business?
If IBM doesn't want to do something because they cant make enough, there will be small business who will do it.
If a business owner can't make enough to do something, perhaps we shouldn't be doing that in the first place.
That is what the free market is all about.
oh by the way, Bush is the one who wanted to just give the money away to corporations without any oversight.
now that is facsist like Hitler.
of course if you are a limbaugh and hannity fan you don't really know for yourself what Fascism means, or you wouldn't be so prone to buying into one side of the propaganda wheel.
These pathetically angry souls are mad at the entire world.
When they run out of enemies to direct their hatred towards they even turn on themselves.
And now Bush is a liberal to them. LOL!
Sick to death of Limbaughites?
Sick to death of the polarization caused by them?
Don't worry.
Remember how they got their butts thumped in November?
Glen, you are on the right track! It is buying products that is the dynamo that makes any economy work! The problem is that the policies of the period from Reagan to now has been aimed at neutralizing or destroying the very people who drive the process. The middle and lower classes have experienced a stagnation and then a decline in the growth of their disposable incomes and it is their spending that drove the economy. Particularly without a middle class, there can be only minimal purchasing and most of that for essentials (like food and toilet paper) so there will be little left to buy new cars or stereos or computers or anything else. To continue to expect more tax breaks for investors and corporate businesses will change anything is absurd. We've been doing that since Reagan. They can invest all they want but it goes into a black hole unless someone is buying stuff. And I wonder where these guys took their economics classes... never mind, I know, the ninth grade.
I thought thats what you are proposing.
Strange, very strange!
Wait a few months until the gas prices soar again. Then just set up a few wind mills and see how that helps the lower and middle classes.
I'm tired of the Bush-Bashing liberals telling the conservatives to "give Obamas plans a chance to work." Well, he has no plans other than to spend more than his liberal friend, Bush, has spent. Its financial fiscal restraint that is warented! Not the socialistic utopia that the red-diaper-doper-babies are proposing.
Thank you Mike Savage. Your thinking has been done for you.
Anyway, Mike R said, "We got Roosevelt instead. Who extended the Great Depression into the beginnings of World War II by his "economic" policies."
Ah, yes, another revisionist historian-standup comedian! It is only in the last few years that this interprettaion has been offered. And it was started by the Conservative Nanny staters who just want people to believe it. If you tell a lie big enough, often enough, some of the people will believe some of it and that's enough. All we need is a crack in the truth for more lies to find a way in.
Or, more artfully (and by an unsuccessful Roosevelt competitor), "By the clever and continued use of propaganda, a people can even be made to mistake heaven for hell and vice versa, the most miserable life for Paradise. What luck for the rulers than men do not think."
Sieg! Heil!
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We export more than we import. Our three largest exports to China: Electrical equipment, nuclear equipment, metals -- oh, and jobs.
Create jobs through tax credits, don't give us money to spend on foreign goods.