by Sixstrings » Wed 26 Aug 2009, 17:17:35
$this->bbcode_second_pass_quote('Tyler_JC', 'M')y thoughts exactly.
We are essentially just encouraging MORE consumer spending. Didn't we already have three decades of excessive consumer spending? Why do we want to continue the same unsustainable economic model?
What happens in a couple years when everyone has all of the cars, refrigerators, and toasters that they need? How will we boost the economy then?
This isn't a long term plan, it merely pushes consumption of future years up to today. Unfortunately, we've already been doing this for decades. Rather than deflate the consumer bubble, we're trying to pump it up even further.
Washington can't think of anything other than spend, spend, spend. They don't have another plan. We've been doing it for so long that no one has any other ideas. We need to be encouraging savings and investment, not mindless spending.
Cash For Fridges is utter insanity and a sign that this country is in irrevocable decline.

I understand now why a depression / great depression is an inevitability -- something that simply must happen, because we cannot stop ourselves from inflating bubbles.
Imagine, for a second, that you had personal access to the credit of your descendants. You'd start with some credit cards in the name of your kids. When you max those out, then you open credit lines in the names of your grand-children, then great-grandchildren and on down the line. All this continues until you announce you're retiring now and won't even be offering any labor of your own henceforth. Eventually you leave this world, and your descendants inherit mountains of dead.
Being raised by you, your kids expect to live the same way and pile on more debt in the name of future generations. This whole scheme is nothing short of exponential, and doomed to collapse.
Now I know we don't literally have credit cards with our grand-kids name on it, but this is exactly what we're doing on a national level. And as our nation's private debts collapse, they get assumed by the state (which means assumed by future generations). Where does all this end? I dunno, it's the greatest economic experiment of all time.. since the world is really one economy now, I think it can really only end in one world government. The world's economy will have to reset, which means they'll have to all do it at once, which requires unified government.
EDIT: one last thought about national debt.. historically, it's been necessary and accepted to pass on massive debts to future generations in limited circumstances -- war. And then in times of peace, the war debts are repaid. What we have now is just massive debt to fund our bread and circuses, with no intention of ever ending the spending spree and paying off the debts.