Thursday, February 2, 2012

Why is there debate about government intervention in this financial crisis.?

Government expenditure(G) is part of the expenditure equation C + I + G + (X - I). To say that the government has no buisness in the market is mathematically incorrect. Do the math.Why is there debate about government intervention in this financial crisis.?I think everybody agrees there has to be government intervention.

But it would be nice if at first they recognized the real reasons behind the crisis.

What they fail to see, is that this is a GLOBAL crisis, and that is what makes it unique. Any previously "tried and trusted" methods just simply will not work, whatever name you attach to it.

Here is a short sarcastic video clip on how our politicians are approaching the crisis:

http://www.youtube.com/watch?v=7Jw9aVMtf鈥?/a>

If you are interested, by clicking on the link at the end of the video you can look at an in depth analysis of the real causes and solutions of the crisis.

I hope it helps, all the best.Why is there debate about government intervention in this financial crisis.?
Because Democrats are trying to attach pork and health care reform in a stimulus bill.



If they truly cared about the economy a true stimulus bill that related ONLY to stimulus would already have been approved.Why is there debate about government intervention in this financial crisis.?You do the math... read the proposed bill!!!!!!!!! Read it..... especially pages 51,52,53 is this what you want??? A government that extorts money from us over a 10 year period into a cash cow of uncontrolled programs??? This is NOT going to help us, that's what this is suppose to be about. The stimulus turned into something not even close to helping us. If the Gov. wanted to help us, why don't they lift the Fed. Income tax for 30 days. That would be helpful!!!!!!!!
So your answer is to just throw money at it without regard to where that money goes and what is done with that money. Nice.Why is there debate about government intervention in this financial crisis.?You are very, very, bright, young man. There is absolutely no ignorance in your statement. Carry on.Why is there debate about government intervention in this financial crisis.?
In my opinion, the government got us into this mess, now it is their responsibility to get us out of it.
You are citing macro economic theory, but not reality. Tax reductions are a better solution, letting individuals make financial expenditure decisions that are done using their cognitive abilities to buy what they need.



Government programs are no more than throwing money at things, hoping something will work, but decades of experience tells us that government economists and politicians RARELY if ever spend money wisely.



If the money is spent on promoting more children having children, social welfare, etc., how does this help? It simply increases the size of the problems in the future when some mother gives birth to a collection of children who each learn how to collect government handouts, and they have children who also learn this.



So the math has little to do with reality -- there are expenditures that produce good results, and many that produce negative results.



Obama's plan is nothing more than the largest wasteful spending program in history.Why is there debate about government intervention in this financial crisis.?
Because too few people recognize the fallacy that is "government spending."

100% of "government spending" re-directs resources AWAY from otherwise productive uses while spending in competition AGAINST productive endeavors. There is not, nor is it possible for there ever to be any exception to this. Consider:

- How useful is it to take money out of your wallet and diminish your ability to drive the economy?

- How does diminishing the value of the money you are left with benefit the economy or yourself?

- Is it particularly helpful to have "government money" competing AGAINST you for resources?

ALL government spending, without possibility of exception does all 3 of the above. That is not to say that NO government spending should happen, just that it's completely silly to imagine "government spending" can help the economy.
You can't solve a problem if you are the problem.
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