There has been some discussion of the fiscal cliff that we may be facing soon. It is hard to believe that this might actually happen, but with the current divide in our congress it just might. I know that a good deal of my disposable income has gone into fueling up my vehicles. Any increases in taxes will close up my ability to contribute to the "private economy" even further. A decrease of government funding for their projects will cost a lot of jobs. Not only the government jobs, but those of people supplying goods and services for these projects. Consumers have already started preparing themselves for the worst. Businesses, in my opinion, have not recovered from the drop in 2008. They have cut costs and have cut employees. How many more cuts can they inflict on themselves and stay alive?
This is not heading in a good direction. We are not the only country on a downward slide. I haven't heard any good global plans on how to cure our ills. All I have seen is a bunch of gifts to the banks of the world. The banks have not been giving back. Maybe it is time to consider a different path to financial stability.
A decrease of government funding for their projects will cost a lot of jobs.
ReplyDeleteLOL, Maybe the government should just give everyone a job skip the private sector.Do you really think that government spending is the answer to this disaster? Let me help you, hasn't been so far.
Government as the last resort for job creation. When government sucks money from the economy, the private sector has less to invest and create jobs.
I don't pretend to know the answer to this problem. I just hope that someone in charge is thinking outside the box on this because we haven't been on the right path for years. I can say that the government sucks a lot of money out of the economy, but it returns much more. For all it collects in taxes and fees, it creates more out of thin air. Some of it becomes debt, some of it doesn't. Our country has become totally dependent on government spending for this economy to turn at the rates we are comfortable with. I don't like that any more than you do - it just is.
DeleteHow does the government taking money out of the country (in taxes?) return more??? Printing more (debt) isn't returning more.
ReplyDeleteWhen government disengages we will have a recession unseen in history. It's necessary before we can move ahead. If the government would have butted out of the economy, the housing recession would have never happened, the banking crisis (the results of the housing crisis) would have never happened.
Having said that, If they would leave the economy alone, it will find it's bottom and we will work from there. We replaced the tech bubble in 2000 with the housing bubble proclaiming prosperity for all. You have seen the results of government intervention.
Now we have the Fed Reserve intervening in the economy, results inflation unseen since the Carter years. Never seen before Government spending, results unheard of debt. Low interest rates that are required as we cannot afford the interest on the debt we have accumulated. We will all pay the price of this folly and it will be change that you will believe in.
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DeleteI challenge you to account for every dollar that the Fed has created. There is some money that has jut appeared out of thin air. I own a whole lot more of the government debt than I really want to, but what am I going to do when the government is the one investing my Social Security? Yes, this great big Ponzi scheme has gone on for years. It has allowed for a great social engineering project that has failed miserably. It has also allowed for more people to enter the millionaire class.
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ReplyDeletesomeone in charge
There IS NO ONE in charge--------take charge of yourself b4 someone less adept does--------It's going to be a mess. Be prepared to feed yourself, warm and cool yourself, educate your children, give harbor to aging parents and medicate you, and those you love------ protect them too, be able to do it all yourself-------you will have NO help from the government! The word "commune" comes to mind. So does "wits."
Wits will replace money--------bigtime. Know how to skin a rabbit, after you learn to catch one. Watching my Dad remove a rabbit from a trap and hold it by its hind feet while cracking it on the back of the head with a piece of firewood will come in as a handy memory. You have to know how to gut and skin the thing too without getting tuleremia too. One rabbit can feed 4 people for a day. Sobering ain't it?
The fiscal cliff is a reality and its comin'.
Does anyone here really believe that Congress will let this happen? With their 15% approval rating do you think they will let this monster take place and send that rating to zero? Betcha $10,000 it never happens, or if it does it will be repealed after the election.
ReplyDeleteI do think Carol is a bit overdramatic, perhaps that is what is required to wake the country from its stuperose condition.
ReplyDeleteLouman is correct above when he advocates a new beginning following a recession never before seen.” Fiat" money is the root cause of the problem. Print paper with nothing but your reputation to back its value. It has never worked since invented by the Romans. Usual course from now on is hyper inflation and eventual default and an economy and its people opened up like a stranded whale. It will take two or three generations to heal but heal it will and the whole sorry process will start over again. As an example I cite the German economy during the 20s of last century and Argentina and Zimbabwe during the past two decades. Greece and Spain may well be next.
Cheers from Aussie