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Technology Stocks : JDS Uniphase (JDSU)
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To: Tunica Albuginea who wrote (21667)9/19/2001 7:37:30 PM
From: RetiredNow  Read Replies (5) of 24042
 
Jeez, now I have to disagree. Spending is exactly what we need. Please refer back to your econ 101 books. Aggregate demand equals consumer spending plus business spending plus government spending minus taxes returned to consumers, all of that adjusted by the multiplier effect.

Notice in the above equation that spending is what stimulates the economy. So in the short term we need massive spending to pull us out of a recession. However, in the long term, if the government spends too much and overshoots, then we'll have massive inflation. Either way we'll have more debt and a budget deficit, which we'll have to work off again when the economy is strong. Remember Reaganomics? Spend like hell to get us out of a recession. It worked, but we racked up a shitload of debt. Maybe we can avoid the increased debt this time, but I doubt it.
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