Quote:
Originally Posted by todd1200
On a national scale, there are three groups of spenders -- consumers, corporations, and the government, right? Consumers spent well beyond their means in the years leading up to the recession, so as a whole, they have to spend less, save more and pay off debt. Corporations have massive amounts of cash on hand but are unwilling to spend it because consumer confidence is down and unemployment is up, so demand for their products is questionable. Would you make the decision to build a new manufacturing plant in this type of environment? So both consumer and corporate spending are weak. Every dollar earned is a dollar that was spent by someone else. So we can resign ourselves to the deepest, longest recession/depression possible -- or the government can step in and be "the spender of last resort" and attempt to stimulate growth. I agree with the general concept of government spending. I don't believe the government acted effectively in response to (and lack of anticipation of) this particular economic mess.
People who make these type of statements tend to think money, and the wealth it should represent originates from a printing press.
Government has no money(wealth) other than what it confiscates from its citizens.
What you are suggesting is that you can stand in a bucket and levitate by pulling on the handle, it won't work and it never has, the "spender of last resort" has been spending the money that does not belong to it on things we do not need or want. Funding projects that produce nothing in terms of real wealth by mortgaging the future always results in disaster.
Corporations have cash on hand because they don't spend more than they collect while generating real wealth, it is a beautiful and simple concept.
Government spending far beyond revenues confiscated created the "large mess" you speak of over decades, and somehow you think more spending will fix it?
I urge you to search your home for a single product manufactured by government or a single service that is not funded by productive citizens. Report back if you find one, I would love to see it.