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While Liberals are attacking Rush and Cheney, the Obama administration is borrowing 50 cents for every Dollar it spends! Do you think if the stimulus did as much for private industry as it does to increase the fed govt, we would see improvement in our economy?

Budget office figures released Monday would add $89 billion to the 2009 red ink -- increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.
The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's economic stimulus bill -- as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.
Just a few days ago, Obama touted an administration plan to cut $17 billion in wasteful or duplicative programs from the budget next year. The erosion in the deficit announced Monday is five times the size of those savings.
http://finance.yahoo.com/news/White-House-Budget-deficit-to-apf-15199183.html

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 8:38 AM on May. 12, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (48)
  • I still believe if corporate and payroll taxes were decreased or placed on holiday, families would have more money today then they currently do. More spending would stimulate Corporations to rehire or they would be able to hire more people and the economy would have a better chance at correcting itself. Government involvement to the point of regulating and stepping in with oversight, is only costing us more in taxpayer money to save businesses who have severe flaws and are not taking appropriate actions to fix their problems. The government is giving the likes of Chrysler, GM, Bank of America a huge bandaid when they need amputation.

    grlygrlz2

    Answer by grlygrlz2 at 8:44 AM on May. 12, 2009

  • You must have been watching/reading FOX news. Actually it is 46 cents of every dollar. That extra 4 cents adds up though. FOX loves to round up to increase the numbers.

    http://news.yahoo.com/s/ap/20090512/ap_on_go_pr_wh/us_obama_budget
    Anonymous

    Answer by Anonymous at 8:47 AM on May. 12, 2009

  • 46 cents/ dollar!!!!!!!!!!!!!!!!!




    Looks like we're completely screwed!!!!!!!!!!!!!!!!!!!!!!




    Don't worry, though, the unions are taken care of to preserve that union vote for the Democrats, and that's what REALLY matters!

    mustbeGRACE

    Answer by mustbeGRACE at 9:04 AM on May. 12, 2009

  • Regardless anon, I think grly is right. This is what the fiscally conservative have been saying for a very long time. All of the money to generate new jobs in the government and private sector, yet unemployment increases. Aren't all of these new jobs not projected to be created until sometime next year? All of the panic set forth to scare people into agreeing with the stimulus that would save us all, yet not a darned thing is coming out of it until next year. Those people that were for it because they were worried that they would lose their job, are now jobless. Seems like bait and switch to me. I don't understand why it wouldn't be possible to give a tax break to small businesses so that they may see a bigger return on their investments and hire more people. Our country is built on small business. I guess they don't have the political pull that corporations have, what with their large donations and campaign backing.

    QuinnMae

    Answer by QuinnMae at 9:07 AM on May. 12, 2009

  • I appreciate the point of view of the fiscally conservative, even if I don't necessarily agree. I do however think that it's unfair to compare eight years to a few months. The current administration's plan may fail, but it may work. Only time will tell. We have to give it a chance.

    I'm not sure what he should be doing for private industry.... one of my biggest questions throughout this whole process has been "What are the alternatives?". If you don't like what the current administration is doing, what would you have him do differently? Should he just let the banks and the auto industries fail?
    It would be nice to have an intelligent discussion with someone on the other side. I really would like to understand.
    Dara.M

    Answer by Dara.M at 9:19 AM on May. 12, 2009

  • The government generally takes twice as many resources to do the same thing a as a private citizen, so yes, if would be better if the money was in hands of private citizens.

    Though hyper-inflation would still be a danger by such an increase of spending money we don't have, that's why fiscal conservatives believe tax cuts are better than stimulus government spending, you pump money into the economy without all the inflation.
    mogencreative

    Answer by mogencreative at 9:30 AM on May. 12, 2009

  • Last night on the news, GM said it will declare bankruptcy because they can't meet the bail-out deadlines. Is anyone surprised? A lot of the stimulus money and bail-out money is and was wasted.
    mancosmomma

    Answer by mancosmomma at 9:37 AM on May. 12, 2009

  • From what I've seen and read this will result in a ten year recession. The current recession will eventually pan out briefly and be quickly replaced by a greater recession based on hyperinflation and apathetic malaise in the character of tired Americans. By then the people will just be so fatigued and worn out from constant worry and strife, nobody will be doing anything but what they have to, to survive and squirreling away their money they have left for doomsday. After being told over and over again to hope and change was coming, not seeing or feeling any will result in a massive depression in the populations.
    There was never any plan for the stimulus to help private industry, private industry was the target and corporate america was the bullseye, Obama's intent was to grow the government. Once you socialize medicine and the banks there is no going back. The auto Industry was like desert for him, an extra gift in the bag.
    akinbottom2

    Answer by akinbottom2 at 9:40 AM on May. 12, 2009

  • Dara, Yes. IMO banks and automakers should have been left to file for CH 11 protection and left to handle their affairs the way the system was already set up. With the increased government intervention we are finding out that taxpayer money is being wasted to "hide" and "cover" faulty business practices. When businesses are left to follow the appropriate course action (ie Ch 11 protection) smaller businesses are given the chance to grow and prevail. Since the govt has now stepped in and said they are too big to fail, money is being wasted to protect the likes of executives (who lobby and campaign for politicians) and the likes of the UAW (who also lobbies and campaigns for politicians). It's all a big campaign game at the taxpayers expense. Obama and his admin aren't looking out for the welfare of corporate America and the growth of business in America. They are looking out for their campaign dollars. It's a game of CYA

    grlygrlz2

    Answer by grlygrlz2 at 9:47 AM on May. 12, 2009

  • With GM what comes next is turning the preferred stock into common stock and then allowing the UAW own the stock, taking the ownership of the company into the hands of the people. Normally I would say that is a good thing to own stock in the company you work for, but I think the UAW were the driving force that caused GM to go bankrupt, and very soon they will own the company. It's almost like the Unions backing Obama, had the idea to create that scenario to begin with. Back Obama, Obama forces them to bankruptcy, the bankruptcy allows the stock to go into the UAW hands, UAW now owns GM. GM comes back after the natural recession plays through and the stock soars giving money to UAW, but the bankruptcy allows the billions in taxpayer dollars already given to not have to be paid back. Win for Obama and UAW. Loss for upper mgmt and you the taxpayer and those who lost jobs during the bankruptcy,
    Now on welfare and govt. dependent
    akinbottom2

    Answer by akinbottom2 at 9:49 AM on May. 12, 2009

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