EDHS Contemporary World Affairs

Mdparamo78 · Senior Member

Is the Recession finally over?

DerChancellorJake · Guru

No. There is no easy way to end the recession. There are some ways we can speed it up, but for the most part we just have to grind through it. And that means LOWERING taxes. Reagen did it, and it worked. Economy got much better. End of story.

ashleyhebert8 · Senior Member

We need to raise government spending and lower taxes for the recession to really be over...

ashleyhebert8 · Senior Member

I just realized the guy above me..just said the same exact thing. REGANOMICS

jallen · Senior Member

I'm not sure further deficit spending is necessary... this recession is different from recessions and depressions of the past in that we already are in a huge amount of debt due to the application of Keynesian economics by past presidents. So while deficit spending helped get the US out of the Great Depression, this is an entirely different situation which we find ourselves in. President Obama has already pumped more money into the economy than any president ever, so I think we need to just wait and see what the effects will be for now.

However, to answer your question... since the average investor seems to be more optimistic, I think things are looking good in terms of a recovery. Because after all, people need to spend money in order for the economy to revive.

DerChancellorJake · Guru

Yes, people do need to spend money for the economy to get better. And that means lowering taxes to stimulate spending.

jallen · Senior Member

I didn't disagree with that point. There are benefits to both raising and lowering taxes obviously, but lowering taxes seems to be more beneficial while the nation is in a recession and Obama and his economic advisors are trying to stimulate the economy.

seanmichaeljreeves · Senior Member

The recession is far from over and the only reason these dems like Tim Geithner or Barney Frank are making these statements is to temporarily bolster their credibilty and cross their fingers in hopes that things will get better for their sake. The only backing they have for their argument is that fewer jobs are being lost. At the same time the rate of people acquiring new jobs is significantly smaller than the rate of those unemployed. There are also those who no longer qualify for unemployment. It seems like every month or so the Obama administration is publicly claiming that the recession is over when they introduce a new measure for more taxes and government spending yet the results speak for themselves. Obama made the claim earlier this year that unembloyment will not go beyond 8% . Unemployment is reported to be 9.5% and quickly rising. And if there so happens to be a slight improvement in our situation, Obama's new healthcare proposal will do nothing but hinder its progress with his new healthcare initiative because it only raises taxes for the taxpaying citizen and subtracts from their money that they can spend on consumerism. High consumer spending and a substantial decrease in government interference are two things that can help make things better. That happened in WWII and is part of the reason that the 50's enjoyed a steady economy. Unfortunately the exact opposite is happening, with the government taking control of everything from the car industry to banks and maybe even healthcare unfortunately. The solution is applied reganomics, with more government spending and lowered taxes at the same time. Yes this will create deficits, but in the long run it would prove to be a fruitful decision unlike cash for clunkers or some joke like that. It happened in the 80's and during WWII. Applied economics is the answer.

Carolanne_Hunt · Senior Member

Ok i don't think the recession is over. It doesn't end that quickly. Especially when we are this far in debt. I mean people want to spend more money... when we are already in the negative? And then lower taxes so people can spend more to stimulate the economy? Really the only jobs obama has created are mainly government jobs.. and taxes pay for those jobs. So if we lower taxes and can't pay for those people to work then thats just more people out of work. I think we should have cut taxes in the first place, and given out the money for people to create business to hire more individuals ( that aren't government jobs!!) That way people could still have money to buy things and jobs would have been created. I mean i would really like to not owe china anymore money than we already do.

seanmichaeljreeves · Senior Member

Obama has not pumped more money in the economy than any other president, HE HAS SPENT TAND THROWN AWAY MORE MONEY THAN ANY OTHER PAST PRESIDENTS. THIS IS CREATING A DEBT THAT WE WILL BE PAYING FOR WELL INTO OUR LIFE. If and when our current situation shows itself for the dismal state that it is in the average person, obama supporter or not, will wake up and smell the coffee.

-- Edited by MrsCavalluzzi on Friday 9th of October 2009 09:02:36 PM

citlallycontreras · Senior Member

we are definatly not out of this recession. and i dont think that reaganomics is the answer. in order to aquire more money taxes need to be raised. but a better aproach is to get out of these pointless wars we are in. we are throwing away billions of dollars on these wars that could be used for something more useful like recovering our economy, health care, education, u know.. important things like that, not the governments imperialistic desires

jallen · Senior Member

Sean, pumping money into the economy=government deficit spending. I was saying he is spending more than any president ever. I have no idea where you got the idea I was an enormous Obama supporter. I don't think my prior statements reflect that in any way.

Kommandant_Karl · Guru

Lower taxes and more spending(not to much though). Oh and Obama needs to stop spending money too. Its as if he's still campaigning.

DerChancellorJake · Guru

Obama is trying to fix the recession the wrong way. Instead of shoving money down the economy's throat and trying to make it like it, he should instead lower taxes. To the person somewhere above me, it has been proven that raising taxes actually LOWERS the income of the government. I dont see how that has any benefits. And do you ever ask where all the money being crammed into the economy by Obama is going? Pumping money into the economy is only an extremely temporary somewhat-of-a-fix, at its very best. I bet we would be just as well off if he didnt pump any money into the economy. To citlallycontreras,
the war in Iraq and the other Middle Eastern countries is not for imperialistic desires of the government. We are not there to take over the country, only to fight the enemy of America, which is the radical muslim.

-- Edited by DerChancellorJake on Monday 28th of September 2009 03:46:54 AM

meganorr · Senior Member

Lowering taxes can help but that is by far not the leading factor for getting out of a recession. Government spending and WHERE the money goes is even more important. Now, "rich" Americans are complaining that Obama is going to raise taxes on them, well when you lower taxes it actually makes the rich pay a higher income tax. Which happened in all cases( in the 1920's, Reagan tax cuts and the Kennedy tax cuts).

CurtisXavierBouyer · Veteran Member

GOVERNMENT NEEDS TO STEP IT UP!

ruby_h · Veteran Member

I think the government should stop pumping billions of dollars we don't have into the economy, we should wait to see the effects of Obama's stimulus plan, and taxes should be lowered.

Kommandant_Karl · Guru

Lowering the taxes will stimulate the economy. Also big brother gotta stop spending money(namely Obama).

Kommandant_Karl · Guru

Obama is a schemer.