We are printing and borrowing massive amounts of money now to perpetuate a Keynesian approach to addressing a recession. a Keynesian approach to bolster a anemic economy is to have the public sector flood the private sector with money in a hope to spur economic growth.
It makes no effort to address why the economy has taken a nose dive or address the specific supply and demand aspects that drive a capitalistic economy.
The primary problem with it is that our dear leader Obama and his cronies have no money to give. A government must take money out of the private sector in order to redistribute it back into the economy. Unfortunately partisan ideologies get in the way preventing any money that's taken to be doled out responsibly. ( if that's possible )
see Solyndra or the first stimulus under Obama for an example.
If they cant take enough of it then they'll print it. Since in a few years our Nations biggest annual expense will be paying back interest on Treasury bills ( 40 % OF OUR TOTAL GDP ) now we are effectively monetizing our debt.
Paper money really doesn't mean much especially in our current electronic banking system. Money is a fluid concept with most of the worlds wealth represented in binary form.
If you gathered up all the paper money in the world it wouldn't come close to equaling the total wealth of every individual on the planet.
Prices for goods and services are market driven based on the fundamental aspects of supply and demand.
That's eco 101.
Eventually what should be done is for the Fed to raise interest rates to try and get that money out of circulation. Raising interest rates is one of the ways to address inflation which we are currently dealing with.
Broad brushing Capitalism as a failed system because people are struggling is a bit naive.
Is Greece a Capitalist society ????
You want lower prices with higher wages and lower unemployment numbers with more tax's being generated lower top marginal rates for people that invest, lower Capital gains tax's and lower tax's on corporations that hire people like us.
You know this thread reminds me of a guy at the supply house , Boris. In Russia he worked at a company who made refrigerators.Well the way told it is this..Every morning over half the people would come in drunk.His main job was to make sure no one fall asleep,because if this happened the plant would come to a halt. And there is a big difference between higher taxes and more tax money!
I get what you guys are saying and thanks for your input...but I'm not talking about right now...I'm not talking about bad economic times, I'm referring to history, and future. I'm not saying we should be communists, but we do need to change something.
You say capitalism works? Then why is our dollar value constantly shrinking? Give me an answer as to why one dollar now is worth roughly 7 dollars less than it was 52 years ago, or why the dollar is worth roughly 13 dollars less than it was 72 years ago?
There is simply more currency floating around now than there was back in the 40's and 60's.
As you can see...the shrinking dollar is not new, it's been going on for almost a century now and to say it's because of Obama is just ridiculous.
The dollar has declined over the last 100 or so years primarily because we and other Countries moved off a hard currency system to a Fiat currency.
I said earlier that money is a "concept". The only things giving Fiat currency real value is its availability ( too much in circulation causes inflation ) and the faith in who ever issues it.
It was the only way for Countries us included to pay for massive endeavors like WW1 and WW2.
That doesn't mean things became more expensive unless inflation was an issue it just means that the scale moved.
Lately the fall of the worth of our dollar has to do with massive public sector debt ( printing, borrowing, etc ) and a massive US trade gap.
Monetary policy in the US is controlled by the Federal Reserve System (12 private Banks ) that are also responsible for setting interest rates and controlling the amount of money released onto the private sector.
The Fed is also the US gov't banker and the US military's Banker.
Obama has contributed 5 trillion to our National Debt and was responsible for the selection of Fed Reserve Chairman Ben Bernanke.
If he's going to be our leader then he needs to act like one and take responsibility for his appointments.
Keynesian economics preaches to flood the market with cash to jump start an economy.
It hasn't had that effect, in fact its had the opposite. Higher inflation and the fall of the US dollar in value causes the cost of goods and services to rise.
Its one of the main reasons oil has jumped to almost twice the price it was when he was inaugurated. Oil goes up EVERYTHING goes up.
You couple that with inflation, massive unemployment with backwards policies for creating new job growth and you have Obama's presidency in a nut shell.
Because of the sub-prime (debacle)...dont get me started...and knee jerk legislation passed after wards it is very difficult to get a loan.
The loss of credit is what perpetuated the great depression and now its worse. Look into the Dodd Frank Wall Street Reform Act.
http://en.wikipedia.org/wiki/Quantitative_easing I don't think it's so bad!
If you have no idea what your talking about, why are you even commenting?
seriously, if Capitalism is a problem, shouldn't you be looking for somewhere else to live?
here, take some of this, it might help