In the past, the government has increased spending and cut taxes to spur spending during times of economic crisis.
However, Uncle Sam is now in so much debt that this is no longer a serious option. And it looks like we are going to spend another $900 billion-plus on health care reform over 10 years (a lot of money, sure, but about a third less than what Wall Street will spend on bonuses).
Simply put, the government lacks the tools necessary to significantly increase consumer or business spending in 2010.
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Reader Comments (Page 1 of 1)
10-25-2009 @ 7:40PM
John said...
Gov't cannot help any more because it blew its wad on bailing out banks. It should have just given the $234,000 to each Citizen. They could have paid off their mortgages, cars, credit card debt.... AND the banks would have still gotten their money.. But wait, this would not have been a good plan as it was not good for the lobby crowd or illegals...