"I don't agree. This is the crap Bush did and was hoping Obama would not do.
Expanding the money to the extent that the Stimulus does is not a good idea. When this heart of the stimulus kicks in in the coming years, it will cause a shocking rate of inflation. That's what happens when you put so many more dollars into the system can handle. The value of the dollar falls.
The other way to do it is to raise taxes. Even if you double the tax rate, we'll still need to print more money. Doubling the tax rate will suck all the life out of the economy and cause a depression.
My prediction is that the stimulus will be repealed.
#77 | Posted by Eddie at 2010-02-12 01:36 PM"
So, we disagree. I'm surprised you thought President Obama would not do this since he said he would in his campaign.
I guess you were hoping this was 'just a campaign promise' that would be ignored.
I don't ENTIRELY disagree with your comment about the inflation, altho' I think you VASTLY overstate the degree that this will occur.
As for your comment about taxes: I'm not clear on what you are saying. Are you saying that raising taxes will cause inflation and/or cause the value of the dollar to fall (or something altogether different)?
I predict that the more the stimulus is directed towards basic infrastructure (roads, canals, transportation, utilities, etc.) and energy development (preferably those energy developments that wean us off of petroleum [especially imported petroleum]), the more likely the direct/immediate the benefits will be and the more enduring the benefits will be in the future. Even today, we continue to reap the benefits of the WPA and CC of 75 years ago. As such, the stimulus might even be expanded. I suspect it won't be too disappointing for you as you'll be reaping the benefits, too.
We might quibble about the specific manner in which the stimulus is implemented, but consider this:
1. who is receiving these $$$?
2. Are they not our citizens?
3. Is it not likely that they will in turn spend ("re-invest") those $$$ in their communities?
4. Will not those $$$ then continue to be re-introduced into those communities (not unlike the general concept that banks utilize when they approve loans: a dollar 'turns around' something like a dozen or more times)?
Personally, I'd much rather our government invested in its citizens rather than (literally) 'blowing up' the dollars while protecting our source(s) of petroleum. I'd much rather a policy that plans for the future rather than trying to cobble-up a way to continue the way we've been going.