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View Diary: Deranged Economic Thoughts Of A Middle Class Madman or (14 comments)

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  •  I agree with all of your points (0+ / 0-)

    It's the timing that I think is the issue.  I do think increased government spending in the face a recession/depression is a good idea to keep the economy moving, but more deficit spending on top of the Bush deficits does pose a serious risk for the health of the dollar.

    I do wish it was easier to make people see that reduction in economic activity (and therefore tax revenue) necessitates a reduction in government expenditures in the long term to reach a steady state.

    And while I think the reduction of government waste is a good long term goal, I think the resultant unemployment on top of what we already have is going to make a bad situation worse.

    It's a pretty good example of damned if you do, damned if you don't.  I do not envy the position of the President-Elect.

    Bring the WAR home

    Starve the corporate beast, buy local!

    by EthrDemon on Fri Jan 09, 2009 at 02:34:53 PM PST

    [ Parent ]

    •  I agree with you (1+ / 0-)
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      We need deficit spending today.  We just need to remember that larger reductions in government spending will be required down the road due to the deficit spending we do today.  Many people forget that fact.  Many on this site either don't realize or forget that this massive deficit spending will require beloved entitlement spending to be sharply reduced as well as military spending (which many on this site are for).  It is a give and take.  We are punting our problem down the road.  It will still be painful down the road however.

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