Dixie - In Memoriam
New member
Our country has endured several catastrophic economic downturns. Most notably, the Great Depression, but there have been several depressions during our history. In every instance, it was the private sector which enabled us to return to a satisfactory economic state. While FDR's New Deal programs did provide jobs for Americans, it was consumer activity which brought us out of depression. When Ronald Reagan tackled the runaway inflation of the Carter era, it was consumer confidence and spending, which brought us out. In both cases, the government took some action, but the government's action was not what prompted a return to good economic times, it was the private sector.
Government, at best, can implement policies which make it easier for the general public to rebound from a bad economy. This is not always a guarantee, it always relies on the private sector and consumer confidence. It does seem that when government cuts taxes, this often sparks consumer confidence and spending. When government eases restrictions on business, offers incentives or tax breaks, this seems to spark growth and expansion, which in turn, creates new jobs. But even in these examples, it is not the government who saved the day, it is the consumer, the business, the free-market and private enterprise, reacting to something the government did.
Since this time last year, our government has spent over a trillion dollars, with the promise to spend as much as 10 trillion over the next decade, in order to "bail out" our economy. Doe-eyed liberals continue to believe this will save us, and they can just continue with their war against the rich and big corporations. Thus far, the influx of money has caused modest increases in the market, but the value of the dollar continues to plummet. Unemployment continues to rise, meaning that jobs are being lost, in spite of what liberals continue to claim. It's just not getting better, in spite of government efforts.
Here's the dirty little secret... government can't fix the economy! Think about this rationally for a moment, if it were possible for politicians to "fix" the economy, and make it all better, don't you think they would do it any time the economy lagged, in order to remain in power? Why would any government official sit idly by and watch us go into a recession or depression, if there were something they could do to prevent it? Entire administrations and political parties have been ousted from office, because of "the pocketbook" of the voter! This has happened for decades, and is generally the determining factor in how the people vote... the economy! If politicians had the power to "fix" the economy, why wouldn't they do it?
Liberals often reflect on FDR's New Deal, and they have mistakenly presumed it was his government programs which brought us out of the depression. Facing 25% unemployment, the many government jobs of the WPA and other projects, certainly were a welcome blessing, and certainly had a cumulative effect on consumer spending and confidence, which helped the situation tremendously, but often overlooked is the banking reforms which were made, sparking a confidence in our financial sector again. Other things were done besides Big Government stepping in to "fix" things.
Now, I disagree with FDR policies, but I understand there was a need for such programs at the time, and he implemented them. But FDR was somewhat Clintonesque in his approach to the overall problem, it was the economy stupid! He recognized the need for easing restrictions on private enterprise, encouraging growth and prosperity in the business sector, his plan included a multi-tiered solution to the barriers of recovery. It wasn't just government handouts, bailouts, and socialist programs. The key aspect, most economist agree, was the banking reforms and incentives for business.
Government can sometimes enable things, which in turn, spark economic prosperity from the private sector, and they can also take actions to prompt economic caution from the private sector. But in all cases, the economy itself, is dependent upon the private sector, not the government. Consumers, business and good old fashioned capitalism, are ultimately what "fixes" the economy.
Government, at best, can implement policies which make it easier for the general public to rebound from a bad economy. This is not always a guarantee, it always relies on the private sector and consumer confidence. It does seem that when government cuts taxes, this often sparks consumer confidence and spending. When government eases restrictions on business, offers incentives or tax breaks, this seems to spark growth and expansion, which in turn, creates new jobs. But even in these examples, it is not the government who saved the day, it is the consumer, the business, the free-market and private enterprise, reacting to something the government did.
Since this time last year, our government has spent over a trillion dollars, with the promise to spend as much as 10 trillion over the next decade, in order to "bail out" our economy. Doe-eyed liberals continue to believe this will save us, and they can just continue with their war against the rich and big corporations. Thus far, the influx of money has caused modest increases in the market, but the value of the dollar continues to plummet. Unemployment continues to rise, meaning that jobs are being lost, in spite of what liberals continue to claim. It's just not getting better, in spite of government efforts.
Here's the dirty little secret... government can't fix the economy! Think about this rationally for a moment, if it were possible for politicians to "fix" the economy, and make it all better, don't you think they would do it any time the economy lagged, in order to remain in power? Why would any government official sit idly by and watch us go into a recession or depression, if there were something they could do to prevent it? Entire administrations and political parties have been ousted from office, because of "the pocketbook" of the voter! This has happened for decades, and is generally the determining factor in how the people vote... the economy! If politicians had the power to "fix" the economy, why wouldn't they do it?
Liberals often reflect on FDR's New Deal, and they have mistakenly presumed it was his government programs which brought us out of the depression. Facing 25% unemployment, the many government jobs of the WPA and other projects, certainly were a welcome blessing, and certainly had a cumulative effect on consumer spending and confidence, which helped the situation tremendously, but often overlooked is the banking reforms which were made, sparking a confidence in our financial sector again. Other things were done besides Big Government stepping in to "fix" things.
Now, I disagree with FDR policies, but I understand there was a need for such programs at the time, and he implemented them. But FDR was somewhat Clintonesque in his approach to the overall problem, it was the economy stupid! He recognized the need for easing restrictions on private enterprise, encouraging growth and prosperity in the business sector, his plan included a multi-tiered solution to the barriers of recovery. It wasn't just government handouts, bailouts, and socialist programs. The key aspect, most economist agree, was the banking reforms and incentives for business.
Government can sometimes enable things, which in turn, spark economic prosperity from the private sector, and they can also take actions to prompt economic caution from the private sector. But in all cases, the economy itself, is dependent upon the private sector, not the government. Consumers, business and good old fashioned capitalism, are ultimately what "fixes" the economy.
