Re: Re: Canadian Prime Minister Warns of Second Depression

[Guest guest]

Thanks .

Its not just the US. Many nations have tried the same policies from the Keynes playbook. It has never worked. Government sponsored busy work is more expensive than private firms doing the same jobs, particularly since very often those jobs don't need to be done in the first place.

Higher taxes and spending stifle the economy and often leads to inflation and economic troubles, even collapse.

If Obama was really serious about fixing the economy, he'd be better off not doing what FDR tried and abandoned, but doing what really counted, cutting taxes. Controlling spending was much harder because there was a war on after all. That led to other problems because Congress tried to spend all that extra money coming in from the higher war taxes on pet projects to help them get re-elected, even going so far as the divert munitions funds to those projects before the war was even over. Of course, that nearly caused a catastrophe when the Germans launched the Battle of the Bulge: not enough ammo to go around.

Today though, our corporate taxes are twice the world average and our corporations have lots of unnecessary red tape. Capital gains taxes are also unwieldy and burdensome as they are written. Getting both of those under control would be a major help to the economy.

In a message dated 11/22/2008 8:44:15 P.M. Eastern Standard Time, no_reply writes:

gave a great synopsis of what happened in the 1920's and 30's and compared it to what is happening now. I think we could all stand to keep in mind what he has written as they will be of great use to us as times get worse.AdministratorOne site has it all. Your email accounts, your social networks, and the things you love. Try the new AOL.com today!