Make 2012 bigger than 2010.
We are off to a great start by getting rid of the RINO Luger.
I found my “rebuttal” when helping my daughter with her homework - she was to read and comment on a paper by one of Obama’s economic advisors (a Dr. Romer).
Dr. Romer says that spending more money and going into more debt (“fiscal expansion”) will avoid a Depression. The 2004 study by UCLA shows that to be in error. It is like saying that one is better off because one has a big fancy house and drives fancy cars. But when one owes more to the bank than they earn – they are NOT better off. (Remember, the U.S. debt is 101.5% of what we “earn” and growing).
Dr. Romer says that “monetary expansion” can help. “Monetary Expansion” is an increase in the amount of money available. It lowers the interest rate, and with a lower interest rate is hoped that people and companies will borrow more money in order to expand their businesses, buy bigger homes, buy new things, etc. which will help the economy. However, with uncertainty in the economy, people and business are probably not going to spend more anyway as they are fearful of what the government will do next (higher taxes, more regulations, etc.). Most of the uncertainty is caused by the government. The interest rates are already very low, and I don’t think that lower rates will help. Other than to make the dollar worth less.
Dr. Romer says that the stimulus packages should not end too quickly and they need to continue. The stimulus funds go to certain companies or technologies based on furthering government policies at the time. It is an artificial stimulus. REAL stimulus is when people want something and want to buy it. Imaginary stimulus is when the government decides what the people should buy. Solar energy is an example. Lots of stimulus money into solar energy companies as the government pushed “clean energy” on the people. As of February 2012 here is a list of clean energy firms that received stimulus funds and are now failing or have filed for bankruptcy. (from Fox News):
• Evergreen Solar
• SpectraWatt
• Solyndra (received $535 million)
• Beacon Power (received $43 million)
• AES’ subsidiary Eastern Energy
• Nevada Geothermal (received $98.5 million)
• SunPower (received $1.5 billion)
• First Solar (received $1.46 billion)
• Babcock & Brown (an Australian company which received $178 million)
• Ener1 (subsidiary EnerDel received $118.5 million)
• Amonix (received 5.9 million)
• The National Renewable Energy Lab
• Fisker Automotive
• Abound Solar (received $400 million)
• Chevy Volt (taxpayers basically own GM)
• Solar Trust of America
• A123 Systems (received $279 million)
• Willard & Kelsey Solar Group (received $6 million)
Yes, the Great Depression did end. She mentioned the “setback” of 1937. In 1938 enough Republicans were elected to fight some of FDR’s policies, and started the road back to prosperity. Less government manipulation got more companies interested in starting or expanding. But the Great Depression did not end because of the policies that FDR, or Dr. Romer, or President Obama promote.