RightWingNutJob said:
How is borrowing more money to consume more products helping the situation? They are doing the exact same thing thats been going on for the past 20 years. All they are doing is re inflating the bubble and setting us up for a bigger burst. They are not allowing the market to correct itself.
Government spending is a joke. You can hire people to dig a ditch and fill it up again, but that's not production, once again you are just borrowing more money to consume. Cash for Clunkers is a perfect example, you are encouraging people to destroy perfectly fine cars that are paid off to take on more debt and buy another car. It's exactly the opposite of what we need.
The problem is that the famous market doesn't just "correct itself." We talk about the market as if it were some organic species with its own psychology and sentiments, when, in reality, it is a completely abstract thing. The market doesn't exist, people do. And the people who really give the market its lymph are extremely greedy and have even been supported in their greedyness by government having taken its hand away from the market. And this has been proven to fly directly against the public interest (even if most are unaware of this). For the people who have been in charge of monitering this non-existant thing and give it rules (in the public interest), which seems to totally govern our lives, have been since Reganomics the same folks at the top of the financial echelons appointed by the politicians who have stood to make the most profit from a market without regulations. There has and still exists, consequently, an incestuous relationship between the political body and Wall Street, again not in the public interest.
Their greed and comlete lack of self-control, for they yes exist, have lead the world's economy through the various exploding bubbles we have seen since the 80's. The only aparent remedy in the capitalist culture, has been for public funds to be poured into the private banking and finacial system to bail it out and save it from complete collapse.
The last crash with the epicenter at Wall Steet has made aparent how much private debt and the finacialization of profit (which is thus no longer manufacture based) had created a virtual wealth that was not connected in any way to real mass earnings, and thus completely unjustifed. But everybody wanted a bigger house, even if their real wages should have made that an impossibility, whereas the finacial speculators filled their portfolios with toxic investments without any sense of decorum and proper measure, driven as they were by the prospects of fast wealth.
As soon as the system failed, all of a sudden, those so-called financial gurus at Wall Street (mostly republicans, of course) who normally love a deregulated market (when profitable) and disdain government spending and denounce it as socialist anathama (oh God!), started to demand of the Bush administratration trillions to save their skins. Then they proceeded on a propagandistic campaign to tell the indignant masses that "everything was allright, daddy isn't dead, just trust in him and he will fix everything as before."
And they say in the capitalist world, ideology is dead. Well if that's not ideology, I don't know what is.
The voice of many democrats, though, has been no better. And so we are right back to the old wicked ways. The market still is without the type of regulation it needs, which, yes may drive profits down and allow less dynamic growth, but will save the savings of millions and allow for generated wealth to be more in touch with actual earnings reality. It was as if the government policy in dealing with the disaster has been: "let's change everything so that everything remains the same." Thus re-affirming the incestuous relationship. Because concepts like responsibility, healthy downsizing (at the financial markets), sustainable growth are just as sinister to conservative thinking as social spending.
Government spending is a joke when it is done in the sheer interests of saving "the market" from its sickness and the miltiary in excess, whereas when it gaurantees citizens good urban infrastructures, healthcare, education and pensions, it is what any mature and responsable society should have its taxes put toward.