Posts Tagged ‘obamanomics’

Will Obama Save Our Economy?

Posted January 27, 2009 by Bernz

The campaigns are over, the inauguration parties all cleaned up. All that’s left is the seemingly impossible task of fixing the American economy. President Obama has been left with quite the mess. The US is in the midst of what may be the deepest recession in the past hundred years. Every day, major corporations are announcing thousands upon thousands of layoffs. National retailers are closing their doors by the dozens. Homeowners are succumbing to foreclosures across the nation.

obama2In the midst of all the depressing and scary economic news, one word is being repeated again and again by the Obama administration: stimulus. According to this economic theory, if enough government grease (in the form of money) is pumped into the American economic motor, consumer confidence will be restored and people will spend freely again. When consumers are willing to spend money, jobs are created. When jobs are created, workers have more money to spend. The whole process levers the economy upwards. So the theory goes.

President Obama’s stimulus package involves many facets including lending money to major corporations on the brink of bankruptcy, creating jobs directly by fixing the crumbling infrastructure of the country, and giving money back to taxpayers to spend as they wish. This is a 180 degree turn away from the supply-side economics of the Reagan era.

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Posted in Financial Goals, Misc | 2 Comments »