What should be done to get the economy out of recession?

[Sunstone]

What should be done to get the economy out of recession? Why?

Is Robert Reich's approach basically correct? Why or why not?

Does the German example have any lessons for the US? Why or why not?

 

[Kilgore Trout]

Promote the perception that the economy is improving.

 

[angellous_evangellous]

The first thing that we need to do is get rid of the Republican party.

Use the CIA to divide them precisely in half over some piddly issue, and do the same thing to the Democrats in the final years of the next President's two-term administration (following two terms with Obama).

That will give us enough breathing room to get rid of the deficit and balance the budget, while the former Republicans become sane.

 

[xkatz]

What should be done to get the economy out of recession? Why?

The recession (and other things as well) is just made up by people. It's just an illusion, only imaginary. If we kill all the people, then the recession will cease to exist.

 

[angellous_evangellous]

If we kill all the people, then the recession will cease to exist.

 

[xkatz]

The truth can be hard to swallow.

 

[Joe_Stocks]

Wait, spending trillions of dollars hasn't worked. Get outta here, really?

This reminds me of that Bob Newhart/Mo Collins skit on MadTV, "Stop it!"

 

[Reverend Rick]

You cannot spend yourself out of debt.

 

[Sunstone]

You cannot spend yourself out of debt.

Debt is not yet the problem. The problem is jobs. And yes, you can create jobs through spending.

 

[Joe_Stocks]

Hi Sunstone,

Debt is not yet the problem. The problem is jobs. And yes, you can create jobs through spending.

The obvious next question is, why hasn't Bush and Obama's spending created jobs?

 

[T-Dawg]

Hi Sunstone,



The obvious next question is, why hasn't Bush and Obama's spending created jobs?

For Bush, it's because he spent primarily on the military. While that creates some jobs for soldiers and the like, it's generally not the most cost effective (or the most permanent) way of getting people employed.

For Obama, it's because he's giving away money to failing companies with too little strings attached, whereas he should be creating government jobs like FDR did. The private sector can't be trusted to create jobs in a time of economic turmoil, because creating jobs is not the most profitable thing to do.

 

[Joe_Stocks]

Hi T-Dawg,

For Bush, it's because he spent primarily on the military. While that creates some jobs for soldiers and the like, it's generally not the most cost effective (or the most permanent) way of getting people employed.

I am talking about the stimulus that was passed and the latter stages of his second term. Unsurprisingly, it didn't work.

For Obama, it's because he's giving away money to failing companies with too little strings attached, whereas he should be creating government jobs like FDR did.

Obama is creating goverment jobs, the problem of course, is taxpayers have to fund them and tax reciepts are pretty low.

The private sector can't be trusted to create jobs in a time of economic turmoil, because creating jobs is not the most profitable thing to do.

You are right about one thing, the private sector isn't about creating jobs. It's about providing whatever product or service they are in the business of. Of course when the government gets out of the way, the private sector does pretty well and does start creating jobs. But you guys hate that.

 

[T-Dawg]

I am talking about the stimulus that was passed and the latter stages of his second term. Unsurprisingly, it didn't work.

I don't know much about this, but if it's anything like other stimulus spending I've heard about, it doesn't have enough strings attached. Trying to improve the economic situation of those who supposedly create jobs isn't going to get them to create jobs unless they think it's profitable.

Obama is creating goverment jobs, the problem of course, is taxpayers have to fund them and tax reciepts are pretty low.

If people are being employed by the government, they will be putting tax dollars into the system. Now, obviously, it's rather circular, and not meant to be permanent.

You are right about one thing, the private sector isn't about creating jobs. It's about providing whatever product or service they are in the business of. Of course when the government gets out of the way, the private sector does pretty well and does start creating jobs. But you guys hate that.

That didn't work in the Depression. The private sector does what is profitable. If an economic slump starts, less people start buying. That means the supply goes up, which means that either prices go down, or the company stops increasing it's supply. Hence, workers get laid off, which means that even less people are buying stuff, and the process repeats.

 

[Neo-Logic]

Increase and keep the home buyer tax credits rolling.

Equity is still the most common form of wealth for most Americans. The surplus of homes in foreclosure, bank owned, or nearing short-sale statuses will only slow the growth. Foreclosed and bank-owned homes increase criminal activity in many neighborhoods where criminals, homeless, or unemployed are stripping copper and other resalable materials. These homes also do not generate property taxes which generally and primarily funds local schools. And the elephant in the room being that these homes are fueling the declining prices and diminishing equity for many Americans in a downward spiral.

The existing tax credits are already working. We need to beef those up and keep it going until our most important and mainstreet-oriented industry is back on its feet and prospering. It's not practical to think that this alone will solve the recession problem. However, I can practically say that the recession will not be solved without progress in the housing industry and this is a very promising and economically feasible way to do it.

 

[Sunstone]

The obvious next question is, why hasn't Bush and Obama's spending created jobs?

I think it's pretty much obvious to everyone but Republican ideologues that Obama's stimulus package saved and created some jobs. I don't know of any economists who say otherwise. I do know of many economists, however, who argued from the start that Obama's stimulus package was too small to get us out of the recession. And what those economists said seems to have been borne true.

The OP asks the question, what should be done to get the economy out of the recession? Republicans have no answer to that. Republicans have set themselves up in opposition to everything the Democrats propose, but they have no ideas themselves -- except cut taxes. They are far from being a party ready to govern.

 

[Reverend Rick]

The private sector can't be trusted to create jobs in a time of economic turmoil, because creating jobs is not the most profitable thing to do.

:clap

So we agree that for the private sector to create jobs there has to be a profit motivation. The government can create a demand for something,(like roads) and that creates jobs which produce something that we all can enjoy.

This country could use an infrastructure face lift. That would be an investment, not a hand out.

If the government creates jobs, all they have done is create dependence on the government that cannot afford to maintain these jobs indefinitely.

When the money runs out, the jobs run out. Then what?

We all cannot work for the government obviously and you can't trust the private sector unless profit is involved. The obvious solution is for the private sector to make a profit. It is necessary for them to do so if you want them to pay taxes.

 

[Sunstone]

This country could use an infrastructure face lift. That would be an investment, not a hand out.

An "infrastructure face lift" would also work out as an economic stimulus.

 

[Joe_Stocks]

Hi T-Dawg,

I don't know much about this, but if it's anything like other stimulus spending I've heard about, it doesn't have enough strings attached. Trying to improve the economic situation of those who supposedly create jobs isn't going to get them to create jobs unless they think it's profitable.

You can attach all the strings you want, it isn't going to work. Do a little research on the greatest economic boom in US history (1982-2007), not a lot of strings were attached and the economy did quite well.

 

[Joe_Stocks]

Hi Sunstone,

I think it's pretty much obvious to everyone but Republican ideologues that Obama's stimulus package saved and created some jobs. I don't know of any economists who say otherwise. I do know of many economists, however, who argued from the start that Obama's stimulus package was too small to get us out of the recession. And what those economists said seems to have been borne true.

What are the economists saying about Obama's promise that his stimulus would prevent unemployment from rising above 8%? The stimulus failed even Obama's own benchmark and you have the temerity to call Republicans ideologues. That's rich.

The OP asks the question, what should be done to get the economy out of the recession? Republicans have no answer to that. Republicans have set themselves up in opposition to everything the Democrats propose, but they have no ideas themselves -- except cut taxes. They are far from being a party ready to govern.

I would say look to history. The greatest economic boom in the US was from 1982 to 2007. I would say do what worked then but we have some ideologues in office that don't see it that way. Couple supply-side economics with some Paul Ryan entitlement reform and we'll be growing in no time.

 

[Sunstone]

Couple supply-side economics with some Paul Ryan entitlement reform and we'll be growing in no time.[/FONT][/COLOR]

Voodoo economics is your choice for getting us out of the recession, Joe? Even most Republican economists repudiate voodoo economics.


Republicans just aren't ready to run this country.