Obama spending binge never happened...Government outlays rising at slowest pace since 1950s

[Mr. Big Dog 10,747]

You have to fall back to your core, and build from there. When you are overextended, you can't keep borrowing and spending hoping that things will improve in the future. Instead, you cut away the non-productive areas, and limit your liabilities. You concentrate on things that continue to maintain your revenue base, build your core workforce, and look for opportunities to expand again. Capital is cheap at the moment, I get offers for $250K or more of working capital at virtually no interest almost everyday, but there is nowhere to go to recoup at the moment. So, I get a chance to make a few improvements around here with sweat equity in between busy spurts, and spend way too much time on the internet. Normally, I would be burning the candle at both ends this time of year, well into October, before I had a chance to regroup. I am still working off excess inventory, which I own free and clear, and order most of my stuff only when I need it, instead of keeping a ready supply.

Of course you can't keep borrowing and spending. The government needs to spend in bad times and you pay off debts in good times. The latter part is what we missed. Look at Europe and look at what austerity has done. It took down several countries already. The one's keeping it all afloat are those that stimulated their economies. Does the US government need to cut back on spending? Absolutely. Everywhere where it's not productive - start with the military. But don't cut education and infrastructure. That's economic suicide.

[mawilson 2,133]

Take a look how well they're doing with all that austerity.

Oh please. They've "tried" austerity for about 2 weeks and are already crying how it "doesn't work".

If nobody spends money, nobody will sell anything, nobody will produce anything and more people will be out of work and businesses would not make any money to sit on.

Sure, if it wasn't for Obama's "big stick" stimulus package, we'd all be unemployed.

[mawilson 2,133]

The government needs to spend in bad times and you pay off debts in good times.

Except they never do. They spend in bad times, and spend more in good times.

[Mr. Big Dog 10,747]

Oh please. They've "tried" austerity for about 2 weeks and are already crying how it "doesn't work".

Two weeks? They've done this for several years in some of the countries. And none of them is looking any better for it. Unemployment rates of up 25%, contracting economies and rising debts and deficits. So they just need to suck it up for a generation?

Sure, if it wasn't for Obama's "big stick" stimulus package, we'd all be unemployed.

Nobody says that we would all be unemployed but the consensus among economists is that there would be around three to four million fewer jobs. And with that fewer tax revenues and larger expenditures - i.e. larger deficits.

Edited May 23, 2012 by Mr. Big Dog

[Mr. Big Dog 10,747]

Except they never do. They spend in bad times, and spend more in good times.

And that is the problem. Spending continues and the stimulative tax breaks never expire. That's how a nation racks up huge debts.