Republican counter offer to Obama

Started Dec 3, 2012 | Discussions thread
Jim
Jim
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Re: "Fiscal Cliff" - a good thing?
In reply to CFynn, Dec 6, 2012

CFynn wrote:

edwardaneal wrote:

In late February 2012, Ben Bernanke, chairman of the U.S. Federal Reserve, popularized the term "fiscal cliff" for this crisis. Before the House Financial Services Committee he described that "a massive fiscal cliff of large spending cuts and tax increases" would take place on January 1, 2013.

"Large spending cuts and tax increases" - shouldn't that mean less government expenditure and more government revenue? - some would argue that this is just what is needed to bring down the deficit.

It's interesting to see how this fiscal mess was handled in contrast to the severe recession that occurred in the U.S. in 1920 after the First World War. In that instance, the federal government did nothing but cut back on some spending and let market forces stabalize the markets. It was pretty much over in a year and the country got back on its feet nicely. Then we have the FDR model in which massive goverment spending was introduced in the years after the stock market crash of 1929. Unemployment averaged nearly 20% from 1931 to 1939. The only thing that pulled the U.S. out of this dilemna was military production for World War Two. Obama doesn't seem to be a student of history as his ideology compelled him to implement the failed FDR model...with the same results: massive debt and little change in employment. He also should take a look at what happened to the currency of the Weimar Republic in Germany after World War One. On second thought, never mind as Obama wouldn't understand it anyway.

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