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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: HPilot who wrote (453274)	2/2/2009 11:23:55 AM
From: i-node	Respond to of 1571401

>> Consumption will actuall boost the economy for a time. Sure, just like it did in FDR's first term. But as soon as he decided, in the second term, to cut back on spending, the economy collapsed and the "Depression within a depression" began. I had no problem with Roosevelt's effort to get the economy rolling when he was first elected; it was an emergency and breathing room was needed. IMO, it is folly to assume that government spending will automatically pull you out of an economic tight spot.

To: HPilot who wrote (453274)	2/2/2009 11:26:06 AM
From: michael97123	Read Replies (1) \| Respond to of 1571401

Doing it the supply side way is like pushing on a string in this environment. What you need to do is to increase demand. Putting money into peoples hands who will spend every dollar is one way to go--unemp benefits,medicaid, target tax cuts. Giving business incentives here is like lowering the fed fund rates to zero when the markets are so inefficient that nobody buys so banks dont lend and nevvous firms wont build out. Having said that, housing is the crux of this. I have heard the 15k tax credit for homebuyers. If you can get home price stabilized and building resumes that has a great effect on employment.