Last night it wouldn't let me make a new thread, so now here it is...
Here is a lovely little statistic about how both stack up with spending. Obama will surpass every dime that was spent by the Bush adminsitration in 20 months and 11 days of his presidency. No matter who he increases taxes on our FEDERAL debt is projected to increase by 1.35 T in 2011 alone. The current federal debt is aroud 5 T. Go figure.
The majority of the spending done by the Obama administration has been in the form of government bailouts. Now while I agree that most of these are useless and senseless in the way that they are applied, we cannot deny that the national economy has leveled out slightly, and the unemployment rate has been dropping slightly in many areas. Much of this can be directly attributed to the spending.
According to many people, this will fail in the long run. Many businesses take huge risks that cost them a lot of money, plunging them into debt. The government then bails them out. The reason these companies take such risks is because they know they will be bailed out. A company spends billions of dollars on questionable research, and they fail. Rather than being more careful and trying to make up the money through sails and caution while relying on more credible research, bailouts will merely give them an excuse to gamble away the money, trying to make everything they lost back.
If a company is not bailed out, many people will lose their jobs if the company doesn't succeed, but it's either that or we allow the company to keep leeching off the government.
A lack of bailouts will level the playing field when it comes to competition, allowing the free market to become one step closer to actually being a free market. Smaller companies can catch all the customers that the big business company lost when it failed.
This is evidence that companies can work harder and smarter if you don't bail them out. Sorry that the article is a year old, I don't know how well Ford is doing at this moment compared to other companies.
I'm not an expert, but it just sounds fishy to me... spending money to get out of debt...
That's why I believe Obama's bailouts will fail us all in the long run.
I firmly agree with much of your statement NoName.
The issue with the bailouts is that they are a short term solution to a long term problem. While in the short term they have leveled off the unemployment rate and saved many jobs, until the economy is firmly back on its feet and these companies begin using their funds more carefully we will see the same cycle.
Wow. What a surprise. Yet another (barely) teenager with no concept of American politics posting two word comments with no basis for his opinion, nor anything intelligent to add to the discussion. I can't wait for school to begin again.
but a very good staement NoName. it may keep people in work, but it is simply keeping a business tha takes too many unncecessary risks,knowing if they fail then they'll get that money back. a favorite quote of mineabout bailouts:
From each according to their ability, to each according to there lack thereof.
Just 2 days ago a new law was passed by the US Congress that clearly states that no new bailouts will be given. Thank God. It shouldn't have taken this long but at least it FINALLY happened.
Now if we could just stop sending money overseas to fund abortion...
