Kris wrote on Thu, 04 November 2010 09:34 |
My point is that thinking the principles you and your family live by when it comes to money should also apply to your Government doesn't make you full of crap and and idiot. If that's your argument then you've already lost.
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I'm all for government stimulus spending. It's supply and demand. The only way for the economy to recover is for people to purchase goods/services, which will stimulate the growth of businesses. Until people start spending, there will be no growth/hiring - how could there be? And the people currently do not have the money to increase spending - without an increase in jobs/income, how could they? The point of stimulus spending is that it gets people back to work, hopefully doing useful things like improving our infrastructure. This puts money back into people's hands, where it will be spent, spurring more business. Hopefully by the time the stimulus spending runs out, the economy will be doing well enough without it.
I am totally against giving the money directly to big business, in tax cuts or any other form. This will not increase the need for workers, so will not result in hiring or expansion of business.
Of course, it's not as simple as all this. But family money principles are not exactly the same as business money principles, which are not exactly the same as government money principles. But there is one principle that applies to all: when money is tight, just cutting spending is sometimes not enough; often there needs to be a way to increase income, as well. And "it takes money to make money" - sometimes in tight times, you have to spend money (even borrowed money) to make more money in the long term. Whether it's buying used tools to pick up some handyman work, or buying better recording gear to remain competitive, or government putting people back to work to jump start the economy, the principle is the same.