Quote:
Originally Posted by MikesTraffic
he is right, no country has ever been able to spend their way out of a recession / depression and instead of doing what is proven to work based on past experiences they are doing the same thing expecting a different result which is crazy. Makes you wonder if the people in charge actually paid attention in economics class
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They didn't pay attention in economics class. But they did pay attention in Political Science class. How the US is handling the problem is pure politics. It plays well to the voters. It sure is a more palatable message than "Buck the fuck up and start saving and sacrificing cuz its going to be long hard ride". People don't want to hear that shit. Comfort is key. Entitlement to comfort is key. So whoever can give them that reassurance (despite economic realities) gets political points.
End result: whatever "management" of the economy is undertaken now will have unforeseen consequences that some poor schmuck 5 to 10 years from now will have to deal with. Latest example: Greenspan's maneuvers in 2001-2002 to manage the Dot Com bust.