What policies could the US gov't adopt to end the recession?

[b0mbrman]

I hear a lot of complaining about the economy here...my question is, what do you think can be done to fix the problem?

 

[DanJ]

Start talking about how the economy is getting much better......re-design the budget.....

 

[b0mbrman]

Wait. How's that?

 

[gopunk]

maybe i'm totally off, but can we really expect a good economy forever? maybe we should just weather it out... take our lumps so to speak...

 

[glen]

End capital gains tax.

 

[b0mbrman]

I don't know, I was thinking about things like (1) Have the Fed increase the money supply or (2) Have the government increase spending/cut taxes...I'm not really sure what's already been done though or what's on the table to be done

 

[b0mbrman]

Anyone else?

 

[BrunoPuntzJones]

nothing, this has happened for the past 100 years. expansion/contraction is inevidable (sp?). live with it we'll eventually be in an expansion and the same thing will happen, it'll tank, be bad for a bit, and back up.

 

[Zenmervolt]

<< maybe i'm totally off, but can we really expect a good economy forever? maybe we should just weather it out... take our lumps so to speak... >>



I've got to agree with gopunk on this one. Although an across the board tax cut might not be a bad idea. What should not be done is the creation of an FDR-like set of "remedies" that are really just handouts and will be impossible to end once this things inevitably turn up again.

ZV

 

[Czar]

What basic economy teaches. The Government should take lots of loans, use the money to build roads, bridges, buildings, finance private companies, start their own companies.

... or like was done before people realised this, just go to war.

 

[LaBang]

reduce our dependency on ALL sources of oil. The US has way too much capital leaving the country because of our voracious appitite for oil. Drilling locally is not a solution because it will never support our needs. We should create clean energy. To get us out of the great Depression we had large public works projects. A large energy plan would create tons of new jobs.

 

[Cyberian]

<< (2) Have the government increase spending/cut taxes.. >>

I am not an economy student, but isn't that a pretty tough combination?

 

[BrunoPuntzJones]

<< Drilling locally is not a solution because it will never support our needs. >>

iirc, the us has enough oil to last 50 years at our current usage level.

 

[b0mbrman]

<< (2) Have the government increase spending/cut taxes.. >>
I am not an economy student, but isn't that a pretty tough combination?

Tough for the government (both serve to increase the deficit) but good for national income/output

I really wouldn't know what specifics are going on in the government right now though regarding either of the two

 

[kaiotes]

multiplier effect!

 

[BA]

<< (2) Have the government increase spending/cut taxes.. >>

I am not an economy student, but isn't that a pretty tough combination?


Ahhh, reaganomics. You see, when you increase spending, it stimulates the economy. The added activity will increased tax revenues to offset the rate cut

 

[Shantanu]

Excess government involvment in the economy tends to do more harm than good. Take a look at business cycles from the 1960's and 1970's, the height of fiscal policy. They're a roller coaster ride compared to post-1985 business cycles (including the current one). The government should cut taxes, lower spending, lower tariffs, and otherwise, stay the hell out.

There's absolutely nothing that could prevent a recession right now. The World Trade Center was destroyed. That's $100 billion in property. After an economic cycle like that, there's bound to be a recession. However, excess government interference will only prolong the recession, not end it.

 

[GTaudiophile]

Do nothing? History tells us the Roosevelt's "New Deal" did nothing to end the Great Depression. It took WWII to do that. Let the economy do what it needs to do.

 

[TGCid]

Escalate the war effort. I know this is kinda immoral and all that, but it is true. War production will boost economy in the States while more soldiers fighting mean more people getting pay. When they come back they will spend, which will boost the economy up much like Post World War II.

 

[b0mbrman]

I've got to agree with gopunk on this one. Although an across the board tax cut might not be a bad idea. What should not be done is the creation of an FDR-like set of "remedies" that are really just handouts and will be impossible to end once this things inevitably turn up again.


It's just government spending that acts like transfer payments...

 

[b0mbrman]

Hey, does anybody know of a link to the economic report of the president?

 

[clarkmo]

Action:
Give me more money.

Result:
Stave off depression. (mine)

 

[wQuay]

(1) Make our federal government spend less.
(2) Monitor legal and illegal immigration to ensure that needed jobs in America are going to Americans.

 

[JellyBaby]

What Shantanu said.

 

[KingHam]

Cut capital gains and return to the gold standard.

KingHam