Saturday, June 13, 2009

Eoconomic Theory

Let's discuss the present situation. Obama is spending allot of money in order to boost the economy. Public works such as roads and bridges that spending goes into the pockets of construction companies and DOT all over the US.
Like FDR who was huge on things like CCC camps just to get started working again.
FDR like Obama believes in a keynesian style of economics. that theory has some valid points but if used incorrectly can be very damaging. it will not boost the economy. It will only boost giant tax burdens on the rest of us. Obama's plan is like getting a high interest Credit card when you're already in huge debt. it looks good for now but when the bill comes people get very depressed. If Obama wanted to pass a stimulus package that would benefit everyone and instantaneously boost the economy for the same price he could've sent checks out to everyone for $5,480 to everyone that's in the work force. or $7890.00 to everyone "just getting by"
This will not solve economic problems in the long run but it's a boost to get us by the recession.
Afterall if we are the governement wouldn't you rather get the money up front if you're gonna have to pay the bill.
Had he enacted an income tax freeze and capital gains tax on everyone by 5% markets would almost instantaneously rebound. Keynesian Theory leads only to communism it's a very important stepping stone. I'm not saying people who believe in keynes had that intention but it's the result. I'm gonna end ot for now but rest assured if you disagree please study on john meynard keynes. I want to bridge the gap of illinformed people. but please be cordial and unsarcastic I will not reply to anyone that is rude. you wont be receptive. Don't be the party of "no"

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