Tuesday, July 28, 2009

Fundamentally Flawed

I was listening to the Regular Guys this morning, now they are for the most part anti Liberal/Socialism. So a Lady called up to defend their Obama bashing. One thing led to another and they got on the subject of stimulus and current economics in general. She proceeds to say that because people are scared and they are saving their money not spending it that this is hurting the economy. In the sort term she is probably right. In the long term, and we all should want a vibrant economy over the long term, this could not be further from the truth. When individuals save their money in turn banks can lend it out to small business spuring REAL Growth. Her logic was that we need to spend more but that is the mantra that has turned the US into a Credit Card Generation. We have become a nation of exuberant spenders. During the Bush years Greenspan would "Applaud" the American Consumer for spending so much. What the Bush Administration has started the Obama White House is pushing full steam ahead with new simulus and govt programs such as Universal Health Care and Cap And Trade. Cap and trade is just another tax, we may need some sort of healthcare reform but not now and not on this expedited timeline. Below is a soundclip of Obama saying they legislation should not be pushed through. Ill admit I lean to the right, but i try to base my views on logic and fact other than just what my loved ones think.

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