The job plan has the same problem: spend, spend, spend and do not know how to get the money.
1. Pass our loan burden to our children.
2. Will have high inflation (not now due to the deflated prices of houses, but not commodities/gold) - an invisible tax for those who have.
3. Will raise our debt ceiling and hence will screw up the stock market.
4. Do not spend wisely.
Education starts at home, not at school. With 40% dropout of Black/Hispanic who will be the majority, we do not have a future even throwing money at schools. Money will be well spent to limit single parent families.
Creating more government jobs is not a good way to boost employment.
We should calculate the actual cost of each job created.
5. The most you can save is to end the two wars - check how many billions we can save a month. We really need to fix our economy and unemployment first. We cannot afford the two wars. Even with the mightiest army on earth, we're really a paper tiger if we cannot fix our internal problems. Same as Mao telling his starving citizens that you're the greatest citizens on earth.
6. Bite the bullet for all by increasing taxes, decreasing welfare/entitlements...
Obama is a good communicator but he should have acted far earlier to solve our economy problem that is created by the previous government. It is obvious Obama is buying votes for the next election.
We elect our leaders, so we have to blame ourselves. The major flaw is our political system to ensure our leaders plan for 4 years and not for the long term. We've more poor than the rich and each has one vote. However, after they're elected, they have to pay back for the special interest groups that have funded their campaigns. That's why democratic system also leads to corruption.
Politicians have to watch out for the benefits/welfare of the poor in order to buy votes. The rich will migrate to other countries with less taxes, and be rewarded for their investment and taking risks. So are the corporations moving jobs and investments overseas.
Greece has been illustrated what, why, and how thoroughly. Democratic system esp. the rich ones could lead to socialism/corruption, and socialism/corruption in turn could lead to self destruction of our society.
(c) TonyP4 2011. Written in 9/9/11. Updated 9/26/11.
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Disclaimer: All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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JHopoper:
ReplyDeleteAnd the one before that, and the one before that, and the one before that, etc. This has been building for a long time, and now we have a structural problem that is not going to change until we have a widespread cultural change that realizes what gov can do and can't do.
I don't see this as very likely. This doesn't mean armeggedon, but it does mean a perpetual European style malaise with high unemployment and dwindling economic opportunities going forward. People will wind up working longer and having less. Find ways to protect yourself if you can, and don't bet money on any vibrant recovery (again, unless there is some radical change in how the populace views gov).