What to be done about the Economy

[Buffalow]

In America, we are experiencing what some people refer to as a foreshadowing of a recession. While not fully into a complete economic slump, we do need to do something, and do something fast if we want to revitalize the American economy. So Newgrounds, I present to you the questions: What can Americans do to improve their Economy? Can the government do anything? Is this President Bush's fault? And if so, will Barack Obama/Hillary Clinton/John McCain be able to deal with it?

[ASHero]

Up sales tax, close corporate loopholes, no pandering to large companies.

[ItBeShannonFoo]

We need to export goods to other countries. As well as possibly switching [ I know it will be slow and painful ] our energy source away from oil. There is too much import than export.

Not only that
BUT PEOPLE NEED TO STOP BUILDING SO MANY HOUSES IN FLORIDA!
They are too expensive, and no one can purchase them.

South shore.
Mira Bay.
and so many other housing developments that have become ghost towns.

[SEXY-FETUS]

Raise tax incentives for new employees.
Cap fuel costs temporarily.
Spend money smarter. If you're going to spend $100 or $10,000 invest into a company established or a start-up put it in a CD or a savings account or something that at least has a possibility of return. There's too many adults today wasting their money on toys.

[cellardoor6]

At 3/13/08 10:23 PM, ASHero wrote: Up sales tax

Rather we should lower sales tax, lower income tax; lower all taxes.

close corporate loopholes

Give tax breaks to companies that provide jobs and wealth. Reduce the corporate tax in our country which, in case you didn't know, is currently the second highest in the world.

no pandering to large companies.

No emotionally-charged, ill-informed blame games, pandering to the unproductive, by singling out companies for blame even though it is those very large companies that are providing jobs and capital which are essential to our economy in the first place.

In the process, we should make Bush's tax cuts permanent, reduce personal gains tax, reduce the corporate tax, provide tax incentives to companies that create jobs etc...

You don't help the economy by taking more money out of it and giving it to the government. In order to help the economy, we should free up as much capital as possible in the market.

The US federal budget for 2008 is $3.1 trillion, almost as high as the entire economic output (GDP) of the next largest economy in the world; Japan. Our government's budget is higher than the entire economic output of France, Germany, or the UK. Our government's budget is almost about 3 times the entire economic output of Canada!

The last thing our government needs is more money to spend as inefficiently as it always does. Instead of raising taxes and giving the government an incentive to keep spending it unwisely, we should cut government spending and decentralize services. Whoever becomes president should whip the budget committee into shape and force them to quit wasting so much money on feckless government programs that don't work.

[MortifiedPenguins]

We live in a mixed economy that leans heavily to a Market/Free Enterprise system.

Why don't we just go along with Adam Smith's original ideas and let the Market sort this one out?

[cellardoor6]

At 3/13/08 11:07 PM, MortifiedPenguins wrote: We live in a mixed economy that leans heavily to a Market/Free Enterprise system.

Yes.

Why don't we just go along with Adam Smith's original ideas and let the Market sort this one out?

Because that's the last thing liberals want. They don't want a free market, they want to exploit people's fears and frustrations over the economy's current woes in order to corral us into big government policies of over-taxation and over-regulation.

[MortifiedPenguins]

At 3/13/08 11:16 PM, cellardoor6 wrote:

At 3/13/08 11:07 PM, MortifiedPenguins wrote:

Because that's the last thing liberals want. They don't want a free market, they want to exploit people's fears and frustrations over the economy's current woes in order to corral us into big government policies of over-taxation and over-regulation.

I think Winston Churchhill had the best quote for this.

We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.

But then again, were taking politics. When they see power at thier hands, they'll sieze it.

[JudgeDredd]

Like, can someone tell us how much money the Fed has pumped into the US banking system to eleviate the "credit crunch" this year already?

[ThePretenders]

We need to bring in automatic stabilisers but cutting taxes, lowering interest rates to stave off a recession.

Obviously this will be temperorary, and the reverse is true when there is economic recovery.

[ThePretenders]

by not 'but'.

[Buffalow]

Will lowering taxes solve the problem or add to our troubles?

[SmilezRoyale]

No 1: Drill our own oil, Or go nuclear. Find the Cheapest and most energy efficient means by which to provide US-originating oil source.

No 2: Any company that gets it's oil from the united states has no reason to sell it for prices equal to, or higher than the current ones.

No. 3: Bank's have the right to refuse a loan if the current wages of the people requesting the loan make it impossible for them to ever pay it back, somone making 30,000 a year can't make million dollar loans.

No. 4 Stop printing money, and find ways to get people to compete more for the dollar

No. 5 Remove frivolous law suites as to reduce the burden on insurance companies and doctors who suffer from paranoia of malpractice. And slap the shit out of people who try to abuse the system by getting rich off of their minor injustices.

No. 6 Turn the other cheek to the pressures of Europe, their socialist morality and view of the world isn't going to keep them from engaging in trade with us as long as we aren't completely jackasses of superiority, and we pretend that we care. [Not that our foreign policy is ever going to be influenced by their demands]

No. 7 Cross the board Tax cuts, As a firm believer in evolution principal i don't care if people sink, because others can swim, and when they do, they rise above and make the nation stronger.

[riemannSum]

At 3/14/08 11:10 PM, SmilezRoyale wrote:
No. 3: Bank's have the right to refuse a loan if the current wages of the people requesting the loan make it impossible for them to ever pay it back, somone making 30,000 a year can't make million dollar loans.

They already do this... I fail to see the point of saying this. Correct me if I'm wrong, its late.

No. 4 Stop printing money, and find ways to get people to compete more for the dollar

More dollars out there = more exports + more consumption + more investments = increase in GDP

No. 5 Remove frivolous law suites as to reduce the burden on insurance companies and doctors who suffer from paranoia of malpractice. And slap the shit out of people who try to abuse the system by getting rich off of their minor injustices.

Most frivolous law suits are already thrown out. The few that make it through have at least some grounding in reality and can be used to further a cause/purpose.

No. 6 Turn the other cheek to the pressures of Europe, their socialist morality and view of the world isn't going to keep them from engaging in trade with us as long as we aren't completely jackasses of superiority, and we pretend that we care. [Not that our foreign policy is ever going to be influenced by their demands]

When do we give in to Europe? I'm sure the U.S. knows that no country will stop trading with it... We single handedly provide some smaller countries entire (semi-exaggeration) income...

No. 7 Cross the board Tax cuts, As a firm believer in evolution principal i don't care if people sink, because others can swim, and when they do, they rise above and make the nation stronger.

Yes.

[SmilezRoyale]

At 3/14/08 11:21 PM, riemannSum wrote:

At 3/14/08 11:10 PM, SmilezRoyale wrote:

No. 4 Stop printing money, and find ways to get people to compete more for the dollar

More dollars out there = more exports + more consumption + more investments = increase in GDP

The money is backed by nothing because of point number 3, the banks are making loans to people who can't pay them back, the banks don't get the money back, the money becomes worthless.

No. 5 Remove frivolous law suites as to reduce the burden on insurance companies and doctors who suffer from paranoia of malpractice. And slap the shit out of people who try to abuse the system by getting rich off of their minor injustices.

Most frivolous law suits are already thrown out. The few that make it through have at least some grounding in reality and can be used to further a cause/purpose.

Whatever few there were, were enough to create these health care problems.

No. 6 Turn the other cheek to the pressures of Europe, their socialist morality and view of the world isn't going to keep them from engaging in trade with us as long as we aren't completely jackasses of superiority, and we pretend that we care. [Not that our foreign policy is ever going to be influenced by their demands]

When do we give in to Europe? I'm sure the U.S. knows that no country will stop trading with it... We single handedly provide some smaller countries entire (semi-exaggeration) income...

Then stay the course.

No. 7 Cross the board Tax cuts, As a firm believer in evolution principal i don't care if people sink, because others can swim, and when they do, they rise above and make the nation stronger.

Yes.

[MortifiedPenguins]

At 3/15/08 04:36 PM, SmilezRoyale wrote:

At 3/14/08 11:21 PM, riemannSum wrote:

At 3/14/08 11:10 PM, SmilezRoyale wrote:

The money is backed by nothing because of point number 3, the banks are making loans to people who can't pay them back, the banks don't get the money back, the money becomes worthless.

The money is still there and still worth something, the faith behind it isn't.
As well that a bank that took a mortage hit loses profit and even total expense thus there loans are limited and thus business that rely on loans are stunted.

Whatever few there were, were enough to create these health care problems.

The problem is, who determines what is frivolous ( I know that we all have ideas, but it's different when you writing a law)

[thedo12]

what i dont get is that in the u.s. theres a economic slump but in canada theres a economic boom, can someone please explain this too me?

[sauronman]

At 3/13/08 10:23 PM, ASHero wrote: Up sales tax, close corporate loopholes, no pandering to large companies.

Finally! Someone sane! Republicans keep saying "How are you supposed to fund national healthcare?" Here's the answer: take away the f*%#in' tax cuts for the people who need them least! Kudos for the sanity dude.

[Extremewookie]

At 3/16/08 02:48 AM, sauronman wrote:

Finally! Someone sane! Republicans keep saying "How are you supposed to fund national healthcare?" Here's the answer: take away the f*%#in' tax cuts for the people who need them least! Kudos for the sanity dude.

You idiot! Most taxes collected by this nation come from "those who need them least."

[Gun-Mage]

WE DONT DO ANYTHING!

let the market fix itself. same with global warming, their are cycles of change. if we try to over adjust it may make things worse.

[SmilezRoyale]

At 3/15/08 05:35 PM, MortifiedPenguins wrote:

At 3/15/08 04:36 PM, SmilezRoyale wrote:

At 3/14/08 11:21 PM, riemannSum wrote:

At 3/14/08 11:10 PM, SmilezRoyale wrote:

The money is backed by nothing because of point number 3, the banks are making loans to people who can't pay them back, the banks don't get the money back, the money becomes worthless.

The money is still there and still worth something, the faith behind it isn't.
As well that a bank that took a mortage hit loses profit and even total expense thus there loans are limited and thus business that rely on loans are stunted.

Whatever few there were, were enough to create these health care problems.

The problem is, who determines what is frivolous ( I know that we all have ideas, but it's different when you writing a law)

Frivolous is money requested that exceeds the estimated value of the damage caused. For example, if someone crashes into my car, i would go to the body shop and the man tells me i need 2000 dollars to fix the fender, when i go to court, i request 2000 dollars based on the estimate of the body shop maker. I do NOT request 1,000,000 dollars for the fender and for my pain and suffering. Also, if a person wants therapy [lets say the crime was psychological] The money will go straight to the psychologist for as many sessions as said individual wants, As a result, the only thing they are getting is therapy and not money.

[DzGuy]

[url=http://www.independent.co.uk/news/b usiness/news/wall-street-fears-for-next-
great-depression-796428.html]Wall Street fears for next Great Depression[/url]

Yay we'll all be poor again!

[DzGuy]

Wall Street fears for next Great Depression

Oops noob URL mistake.

[Buffalow]

We will never go into another Depression as great as well, the GREAT Depression. Hence the name.

[DzGuy]

At 3/16/08 01:54 PM, Gwarfan wrote: We will never go into another Depression as great as well, the GREAT Depression. Hence the name.

We'll be pretty damn close. The 2000's economy looks very similar to the economy in the 1920's IMO. That's what caused the crash that spread through the 1930's.

[riemannSum]

At 3/16/08 02:15 PM, DzGuy wrote:

At 3/16/08 01:54 PM, Gwarfan wrote: We will never go into another Depression as great as well, the GREAT Depression. Hence the name.

We'll be pretty damn close. The 2000's economy looks very similar to the economy in the 1920's IMO. That's what caused the crash that spread through the 1930's.

Wrong. Globalized Economy = No US 'Great Depression'. Why you people think the economy is in shambles is beyond me with the GDP still clipping along as it is. Equity Market =/= Whole Economy. It's just a small part of the bigger picture. In an economy consisting of over 13 trillion dollars, honestly, 13 billion is one of the smallest drops in the bucket you'll see.

[D2Kvirus]

What you really don't want to do is sellf off your gold reserves, and see gold double in value in the following decade like our then-Chancellor Gordon Brown did. We should be thankful that he never got to run the country.

Oh, bugger...

[DzGuy]

At 3/16/08 02:23 PM, riemannSum wrote:

At 3/16/08 02:15 PM, DzGuy wrote:

At 3/16/08 01:54 PM, Gwarfan wrote: We will never go into another Depression as great as well, the GREAT Depression. Hence the name.

We'll be pretty damn close. The 2000's economy looks very similar to the economy in the 1920's IMO. That's what caused the crash that spread through the 1930's.

Wrong. Globalized Economy = No US 'Great Depression'. Why you people think the economy is in shambles is beyond me with the GDP still clipping along as it is. Equity Market =/= Whole Economy. It's just a small part of the bigger picture. In an economy consisting of over 13 trillion dollars, honestly, 13 billion is one of the smallest drops in the bucket you'll see

Well if you go with my 1920's comparison, you can see their economy growing, growing, growing then all of a sudden, everything dropped in 1929. I'm sure no one saw that coming at the time.

Even if there won't be a major depression it would still be helpful to learn something about the past.

[ASHero]

At 3/13/08 10:58 PM, cellardoor6 wrote:

At 3/13/08 10:23 PM, ASHero wrote: Up sales tax

Rather we should lower sales tax, lower income tax; lower all taxes.

close corporate loopholes

Give tax breaks to companies that provide jobs and wealth. Reduce the corporate tax in our country which, in case you didn't know, is currently the second highest in the world.

no pandering to large companies.

No emotionally-charged, ill-informed blame games, pandering to the unproductive, by singling out companies for blame even though it is those very large companies that are providing jobs and capital which are essential to our economy in the first place.

In the process, we should make Bush's tax cuts permanent, reduce personal gains tax, reduce the corporate tax, provide tax incentives to companies that create jobs etc...

You don't help the economy by taking more money out of it and giving it to the government. In order to help the economy, we should free up as much capital as possible in the market.

The US federal budget for 2008 is $3.1 trillion, almost as high as the entire economic output (GDP) of the next largest economy in the world; Japan. Our government's budget is higher than the entire economic output of France, Germany, or the UK. Our government's budget is almost about 3 times the entire economic output of Canada!

The last thing our government needs is more money to spend as inefficiently as it always does. Instead of raising taxes and giving the government an incentive to keep spending it unwisely, we should cut government spending and decentralize services. Whoever becomes president should whip the budget committee into shape and force them to quit wasting so much money on feckless government programs that don't work.

I agree with you to a point about freeing up capital to be spent in the free market, but when the funds are just circulated amongst the highest of the high class it really does no good for the overall economy. Bush's tax cuts benefited only the rich, and hurt anyone lower that the middle class. This did nothing to encourage the economy. The ones that now have more money to spend, already had money to start with. So lowering the tax cuts put in place by Bush, the lower socio-economic classes would also be given the means to stimulate the economy, and by population, they far outnumber those being benefited now.

Taxes aren't a bad thing, especially under a government that has its head on straight. Money in the government isn't necessarily money away from the people. In hindsight, maybe increasing sales tax would be a bad idea, because people see taxes as you do, bad, but in reality taxes and the money raised from said taxes can alleviate our gigantic (and growing) national debt. Less national debt would decrease our international debt (which is the majority of our national debt) and therefore giving off shore countries less influence and control over our existing economy. The US economy should belong to the US.

[Der-Lowe]

At 3/13/08 11:07 PM, MortifiedPenguins wrote: We live in a mixed economy that leans heavily to a Market/Free Enterprise system.

Why don't we just go along with Adam Smith's original ideas and let the Market sort this one out?

I read an interesting article about the Fed, which basically was "to intervene or not to intervene", that explained that, although all those who made bad decisions should pay for it, and although that what you're doing when you lower rates like this is to create the next bubble, the Fed was forced to do what it was doing, because there is a high risk of creating a long period of economic stagnation, in which the economy reaches a point in which it is unresponsive to economic policies.
E.g. Japan.