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Old 02-20-2009, 03:50 PM
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Default Re: Obama's Stimulus Package: Direct Translation

The problem where the recession started was:

A] People had money to spend. They overspent, drew whatever little money they had out of banks to spend more.

B] Riding on wave of euphoria, everyone was happy. Banks were starting to lose money since people had nothing they wanted to/were able to put in the banks.

C] Around the time banks started to collapse. People also started to lose whatever they had. And all three crashed together.

What happened in the 1930's was- The Congress/Government told the people to save money. If banks have money, more money will be able to flow into the system. People will know the value of money and we'll have a more moderate but standard and stronger economy. The Government undertook spending- and started a number of projects and the economy recovered.

There's a lot of ways we can bring about a boost in the economy read this.

It will take more than a trillion dollars to upgrade roads, bridges, mass transit, airports, schools, dams, water purity, and waste disposal facilities in the next century.

School Buildings literally are crumbling; more than half of U.S. roadways are in substandard condition; airports will face gridlock by 2004; and tens of thousands of people become ill each year from contaminated drinking water. Accordingly, it is fair to say the nation's infrastructure is in pretty bad shape. Without substantial help, the situation is not going to get any better.


^ Government should undertake those things instead of...stupid things like a war. But then, being 11 Trillion or so Dollars into debt, the government can't. So make the people spend. =P

Does an economy have to be in 100% euphoria all the time? Such recessions actually "Prune" the economy.

http://www.telegraph.co.uk/finance/n...-Stiglitz.html
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