Quote:
Originally Posted by aceventura3
Just let us stop the pretense thinking deficit spending will have a lasting stimulus affect on the economy. People, working, saving, spending and investing in the future is the best way to grow an economy. that equates to the government letting people keep more of the fruits of their labor. Government spending leads to higher taxes or inflation at some point, both would have a negative impact on economic growth.
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Where you have been the past few months? People aren't working, saving, or spending, and investments went poof as speculative bubbles popped and the Stanfords and Madoffs scurried into their ratholes.
So what do you do? You have the Mellon/Hoover course of action, hugely successful in the past as we all know, of doing as little as politically feasible. You can sleep well at night knowing that your policy conforms to invisible hands dogma. Or, you can try to apply human knowledge to the situation through the institutions that we have created and reproduced. It comes down to a passive, crypto-religiosity vs. purposive human action.
Future inflation? You'd be better off worrying about the problems in the here and now. Foresight and planning are important, but if this crisis isn't dealt with adequately, you'll be trading in tins of tuna fish.