What's that saying? If you keep doing what you've been doing, you'll keep getting what you've been getting:
We all know how we got into this economic mess. We spent too much, borrowed with abandon, and acted like the bills would never come due. So what's the prescription for getting out? Spending more, borrowing more, and acting like the bills will never come due.
When something sounds too good to be true, it usually is. This alleged cure deserves special scrutiny because it invites our policymakers to redouble the very policies that caused the crisis. Congress and the new administration are all too eager to abandon restraint so that we can overcome the consequences of excess.
Comments
Just goes to show 'ya Leo, that you actually CAN fool MOST of the people MOST of the time...
Lemmings anyone?
(got yer cliff RIGHT here)
;)
Leo, I am now worried more than ever. Have we passed the ulitimate point of new repair? For decades economists have stated the deficit is only 1 to 2% of GDP. The problem is that each year the interest costs increases, taking a larger bite out of each federal dollar collecte. We the people have not paid any interest on the debt, but simply borowed more each year on top of what we borrowed each year since 1957.
We need to save, but in order for us to save, we need to cut spending. In the past when manufacturing was 70% of the economy, people had jobs producing neccessities. This kept the unemployment rate lower than it might had the economy been mostly service jobs. During this recession, people are cutting spending where they can, discretionary which is to save service sectors. As we cut we will increase unemployment drasticly.
The government fix is to provide a stimulus check hopeing we will spend it. The problem is most will spend it on imported goods, not goods produced here at home. As I stated before, it would have been far better to let the few large banks fall, identifying the good from the bad and begin again. Now we are trillions more in debt and we still have no idea which banks are good or bad; people cutting spending because they fear being laid off - leading to more unemployment.
My prediction, it is going to get worse before it gets better.
We had an opportunity to clean house, but we failed in our responsibility as citizens. The reason why we are in this mess is because of those we elected. We complain about the CEO's who ruin the companies, but we turn the cheek when it is a representative or senator. Go figure.
My prediction is that things will get worse before they get really awful.
Leo, your prediction is dead on.