Everyone seems to have a opinion on the Federal Stimulus package, including yours truly.
You could be a:
Pro:
"Let's stimulate now to avoid even further financial disaster," or
"If we don't act we will be starring into the next great depression," or
"Start the money flowing and stop the bleeding," or
"We need spending on shovel ready jobs now."
Con:
"We are digging ourselves into a further financial hole" or
"We are borrowing from our future to pay for today" or
"Generations of future Americans will be paying for our financial decision of today" or
"An average American can't deficit spend themselves out of debt."
What we should all agree on is the severity of the problem. Now of course it does not pay to be an eternal pessimist doom and gloom guy but the American public should realize the gravity of the situation. Both a prolonged recession deepening into a depression and the proposed unchecked deficit spending has significant drawbacks. Each could have significant long term negative economic effects. The risk of doing nothing is a continuing of a financial "death spiral." The risk of doing something (deficit spending) is the negative financial effects that are shifted to future generations. Not to mention that deficit spending to stimulate the economy right now has a sort of artificial effect on the market place. Buoying certain sectors of the economy but not others. Surely, we are counting on the ripple effect but those have got to be some ripples. So it seems we have to make the best decision from the worst of options. The risks and stakes are high and there will be very little room for error. The newly elected President Barack Obama, Congress, and indeed all Americans and world citizens are on a mission for economic recovery. It's a zero-fail mission!
Wednesday, January 28, 2009
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