1 post tagged “stimulus plan”
NO! Which is probably why it's not called the Fix the Economy Plan. I’m not sure if something called a Stimulus Plan even aspires to be a “fix” for our economy. I also don’t think economies lend themselves to being fixed (which why every attempt, anywhere, always fails). The simple truth is that this “economic slowdown” has been a long time coming. Economists on both sides of the Atlantic have, for decades, implored US Americans to increase their savings rate. Did they? Instead, US Americans have enjoyed an artificially high standard of living backed by an artificially high, overpriced dollar, and the Wal-Mart model which has an immediate effect of spending less and a net effect of spending more.
The citizenry’s high consumption, low savings, and demand for low prices have contributed to a deficit in the balance of trade for EVERY trading partner that we have. This, combined with the milliards of dollars that we have spent in Babylon (spending on global security aside) is a sure-fire way to court an “economic downturn”.
But now, since China has stopped buying all of those bonds and won’t let the Yuan appreciate, it’s gonna be pretty hard/impossible for the dollar (1.58=EUR today) to recover. Stimulus is always good, but US Americans are gonna have to learn to cut back and…SAVE!
re: http://www.alternet.org/story/80583/
