Under a socialist mode of production all personal inventives which selfishness provides under capitalism are removed, and a premium is put upon laziness and negligence. Where in a capitalist society, selfishness incites everyone to the utmost diligence, in a socialist society it makes for intertia and laxity.
Ludwig van Mises
This is an answer to trexmom. This is (R) Texas Congressman Louie Gohmert’s idea. Of course, I wouldn’t pass this up if it was given to me, but I don’t think it would solve the problem with the world economy. I also don’t think we can spend our way out of this either. Right now Congress is talking about a $1 trillion dollar stimulus package for infrastructure, etc. Sounds good. But the Japanese tried something similar in the 90’s and it didn’t work. FDR tried something similar with the New Deal. It didn’t work. It took Japan almost a decade to get out of it and it took a World War (in combination with the Lend/Lease Act) for the US in the 30’s. In fact, the US didn’t get out of it till the mid 50’s. I’m not saying they didn’t have an effect, but it was not what solved the problem.
Now, I watched CNBC the other day and they had a (Political Party) Strategist and a CNBC commentator on discussing this. The strategist claimed the reason it didn’t work in Japan was because it wasn’t big enough. Nice. When you hear a quasi-politician say something didn’t work because it wasn’t big enough, so we need to make it bigger next time……run. The red flag should be at high staff!!!
Not paying any taxes for two months, or taking the $700 billion and giving $2,300 to every man, woman and child in the country won’t solve the problem. It will just delay it two months. Come March, the people who can’t pay their mortgages still won’t be able too. The people who are losing their jobs will still lose their jobs.
We are going through a economic correction brought on by stupid politicians making stupid, selfish policy decisions and stupid citizens not seeing that playing by these new rules is bad for them. You two were smart when you were offered a sub-prime loan. You’re probably still in your house because you had your wits about you to say no. But many weren’t. Why on earth should someone who makes $14k a year be allowed to buy a house with no money down? The politicians won’t be paying for it. You and I will.