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What happens after...?

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What happens after...?

from JoeUser Forums

I'm gonna get way out in front of this issue and ask now: what happens after the stimulus runs out?

After the artificially boosted spending is gone, will private enterprise (i.e., businesses) and individuals be able to gracefully slide in to pick up the spending that the feds are about to unleash upon the marketplace?

I ask in all seriousness.  If we go and spend all of this stimulus money on things that we need or find useful, that all seems fine, well, and good, but what happens when the spending levels are cut and/or spending is brought back under control -- what will pick up the slack?

politics
10,830 views 28 replies
Reply #27 from JoeUser Forums Top

To best answer this, think of what would happen if there was no stimulus - things would be bad for a couple of years, and then start to recover. So if the timing is got right, when the stimulus runs out, things will have recovered and so the market will be able to pick up where the government has left off.
End of quote

Combined with raising taxes on both the 'rich' and investors (capital gains) whether rich or not, odds are we'll end up simply repeating FDR's mistakes & prolong our agony far longer than the normal economic cycle would have.

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Reply #28 from JoeUser Forums Top

what happens after the stimulus runs out?

End of quote

Obama will give another few hundred billions to weird research projects and some cronies and then blame Bush for creating a recesssion that just gets worse and worse no matter how much government spends on weird research projects and personal cronies.

Democrats will then continue to blame Bush for leaving an unbalanced budget.