Re: Obama Unveils $3.55 Trillion Budget Plan
Looks like we don’t disagree much. But the people who receive the money
first must spend it on creating work for others before we see change.[/quote]
Yes. We could also do it the capitalist way, and let the people who already have money purchase assets that should be liquidated by insolvent companies or institutions, and then use their money to combine those assets with labor to produce value. Unfortunately, the government believes it is better at allocating resources than the private market and it is going to increase taxes on the very people who are the only ones truly capable of creating jobs, in order to increase the employment level for make-work jobs, not jobs that actually produce something someone might want to purchase.
[quote]They might buy a huge luxury yacht but that won’t cause inflation. Your
purchasing power won’t drop because they printed money or bought
anything existing. [/quote]
I don’t see government printed money going to buy yachts, but then I again, I guess I shouldn’t be surprised if it did. If only we could trick all the beaurocrats to board it at once… 😉
[quote]I see asia as full of people working their buts off, often in
appauling conditions and for very long hours, and saving in US dollars
so Westeners can consume. Wonder why they would want to stop doing
Until now, most Chinese have benefited from US trade. I know it’s hard for you and I to consider that existence as "good" but obviously its better than whatever their prevous alternative was for them or they wouldn’t be doing it. In any case, I think those days are coming to an end. US imports from China are down 40-60%. Factories are closing all over. Even before the downturn, China had 700 million people living below the poverty line. It will be interesting to see what happens over there. The Chinese have some big advantages: very strong culture, traditions, work ethic, strong family traditions. Their culture has survived 5,000 years. Something tells me they’ll last a while longer, but their gorvernment probably won’t.
In any case, I consider printing money into existence the economic equivalent of paying for sex and expecting to get a meaningful relationship. That’s probably a horrible example, but that’s how I feel about it and I think there is a basis of truth to it.