Wednesday, September 29, 2010

Spending Our Way To A Better Economy?

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Spending Our Way to a Better Economy?

We often hear about how the government is trying to spend its way out of a recession, but can that really be done? Can we really raise the deficit by trillions of dollars, and expect to lower it at the same time and in doing so, secure our economical growth and standing as a world power, knowing so many other countries hold our debt?

It is ascribed that the Obama Administration, from the departed Larry Summers, to Tax Avoiding Timothy Geithner, and all of their ilk, follow Keynesian Economic theory, but what exactly is that theory, without getting a brain cramp trying to figure it out? Because let’s face it, if you want double speak, all you have to do is listen to a politician defend his position on things, like being for health care reform, that doesn’t reform health care.

In looking to the web, I found this link, [1], which ascribes to be able to explain the theory, and how it is suppose to work. They say there are 6 points to it, and they break it down as such, (Italics are from the article, and the author or the article)

A Keynesian believes that aggregate demand is influenced by a host of economic decisions—both public and private—and sometimes behaves erratically.

According to Keynesian theory, changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices.

Keynesians believe that prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor.

Keynesians do not think that the typical level of unemployment is ideal—partly because unemployment is subject to the caprice of aggregate demand, and partly because they believe that prices adjust only gradually.

Many, but not all, Keynesians advocate activist stabilization policy to reduce the amplitude of the business cycle, which they rank among the most important of all economic problems.

Finally, and even less unanimously, some Keynesians are more concerned about combating unemployment than about conquering inflation

So, even in following the above 6 items, you see that the policy that is being followed isn’t even agreed on by those who use it.

But the first line strikes me as being the most interesting, as the current Administration is trying to bury the business owners with the burden of taxes, regulations, and now forced health care, which is stopping them from hiring, expanding or doing what needs to be done IN THE PRIVATE SECTOR, in order to supply the jobs for the theory to work.

So, what do we do? Can we fight Washington D.C. and get them to listen to our voices, to do what needs to be done, what has worked in the past, and get the people back to work, which will supply tax dollars for the elected to abuse?

Well, we can exercise our right to vote. To elect representatives, both locally and nationally, who can work to fix the broken economy, the broken system of checks and balances, because let’s face it, more than the economy is broken, the whole system is broken.

Instead of having judges who are concerned with Constitutional law, we supply the bench with people who are aligned with the party in power, and followed a prescribed doctrine, instead of what was written by the founding fathers.

So, as a capitalist society, we are concerned with the all might dollar, instead of the Almighty God, and we have lost the focus needed to fix what is wrong. From the Economy, to the Unemployed, to Middle Class, to the Ruling Class, to the Classless, we have divided our Country, not along the lines of race, but along the lines of economic viability, the haves and have-nots, and in doing so; have allowed those who have lied to us the best, to set the course for our own destruction.

These are my thoughts, and how Mark C’s it.



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