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US "stimulus" plan??

  • 21-03-2009 3:30am
    #1
    Arka
    Closed Accounts Posts: 6 ✭


    Obama administrations' stimulus plan is designed to increase consumer lending, but these loans have to be eventually repaid by consumers. How is this helping US economy?


Comments

  • #2
    ionix5891
    Closed Accounts Posts: 1,033 ✭✭✭ionix5891


    Arka wrote: »
    Obama administrations' stimulus plan is designed to increase consumer lending, but these loans have to be eventually repaid by consumers. How is this helping US economy?

    The whole system and boom of the last decade have been build on ever increasing levels of debt, and spending the money from China's savers (China is artificially keeping its currency low, keeping their people poor so Americans party for a bit longer)

    if people have more money they will spend it lifting the economy, Obama is attempting a big Keynesian experiment, whether it will work or not is another matter as there are still arguments about past Keynesian attempts

    and no it all doesnt make much sense :) one cant help but feel they are attempting to kick start another bubble


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