Fayd wrote:
massive spending in a recession is dumb. people (not government) will ultimately make the best decision of WHERE to spend their money, in the way that is the most efficient to them.
In a recession unemployment rises therefore tax revenue goes down and government spending on social security/benefits spending goes up - unless you want to let the unemployed starve.
If a government borrows money and invests in infrastructure projects this creates more employment therefore tax revenue goes up and social security spending goes down so the government revenue increases and the debt can be paid back - with the added benefit of renewed infrastructure.
Even spending on defence creates employment but the net result is arguably less beneficial to the country.
This approach has generally worked in the past (with the exception of Japan) and seems logical enough to me.
The people generally do NOT spend in a recession because they have lost their jobs or they are worried about losing their jobs and instinctively stop spending and start saving or more likely try to pay off their personal debt. This does not help to create more jobs.
Once the national debt becomes more manageable, the causes need to be addressed.
There is no point putting more money in peoples pockets if they are going to spend it on goods made in Chinese sweat shops or Japanese car factories. Far too much cash flows out of the US (and the UK).
Peoples expectations and attitudes need to change. Easy credit needs to stop. If not, the West will continue it's decline into poverty with disastrous consequences - civil unrest, rioting, anarchy and the collapse of the "Western Empire"; except that I imagine the US government would nuke China rather than let that happen.
Regarding the "Teabaggers":
I am sure that there is a section of the American people that are still very racist - look at the history for fucks sake! How recently did equal rights come in? How much opposition to it was there? Do you really think peoples opinions will change so quickly?
Two things I would like to say -
1) Being a Conservative does not make a person a racist. (Or a Palin fan!)
2) Being opposed to immigration does not make a person a racist.
Please, people, do not get these issues confused.