There's No Pain-Free Cure for Recession

[Crewleader]

Economics / Recession 2008 - 2009 Dec 29, 2008 - 10:28 AM

By: Peter_Schiff

Belt-tightening is required by all, including government. The following are excerpts from my article that ran in the Wall Street Journal on the 27th of December. The piece considers why unlimited government activism to fight the intensifying recession is so universally appealing.

As recession fears cause the nation to embrace greater state control of the economy and unimaginable federal deficits, one searches in vain for debate worthy of the moment. Where there should be an historic clash of ideas, there is only blind resignation and an amorphous queasiness that we are simply sweeping the slouching beast under the rug.

...It would be irresponsible in the extreme for an individual to forestall a personal recession by taking out newer, bigger loans when the old loans can't be repaid. However, this is precisely what we are planning on a national level.

I believe these ideas hold sway largely because they promise happy, pain-free solutions. They are the economic equivalent of miracle weight-loss programs that require no dieting or exercise. The theories permit economists to claim mystic wisdom, governments to pretend that they have the power to dispel hardship with the whir of a printing press, and voters to believe that they can have recovery without sacrifice.

By Peter Schiff

http://www.marketoracle.co.uk/Article7998.html


There's No Pain-Free Cure for Recession

http://online.wsj.com/article/SB123033898448336541.html

[leftofthedial]

1. I don't think this is a recession

I think this is new territory--a paradigm shift, not a cycle.

[elocs]

2. What would FDR do? n/t

[Jackpine Radical]

3. Thsi guy can't distinguish beteen an investment and a loan for a party.

All the debts run up since Reagan were essentially transfers of wealth from the poor to the rich, via means such as the Military-Industrial machine, stupid wars, outright gifts to the rich via tax cuts, etc. that left us with nothing but a helluva hangover and all the furniture wrecked by the partiers.

The alternative is to take out loans to put people to work, to build a modern infrastructure, improve the nation's health, clean up the environment, and get us on a new foundation for the next century.

[opihimoimoi]

4. A deepening recession is forecast for nx year....who noes whad gonna happen

What can we do? many things but most of it involves our gov't...it is they who must solve the mess...

Jobs and more jons...steady jobs....jobs that cannot be off shored...good paying jobs...

Housing....good adequate housing.....cheap and yet good housing....cheap rent for those starting out or affected with bad fortunes

projects to build....Roads, Bridges, highways, are one thing....not enough...we should do more...but ideas from the Right is not yet forthcoming...

Obama and his Team got so much on their plate at this time....its questionable for the nx 6 months that a plan emerges...

meanwhile, them Pubs are still sniping...making thiungs more diff

Obama should be focusing on reducing the Ig Level.....its one way of insuring better leadership/Nation Building in the future.

Crew, we been at this crap for too long...they need help....our leaders are suffering from info overload...and conversely...underload as well.

we must find ways to assist the Presidents Team...without being assholes of course....but, even they cannot do it all....they need all the help we can muster...

Opi

[Crewleader]

6. Opi

you said it my friend.

I always appreciate the views of DUers whenever I post an article from those that can stir and specially those that can inspire!

Happy New Year DUers

....remember we're in this together! :hug:

[The_Casual_Observer]

5. Dear Mr Schiff, my belt has already been tight for years. Who's this "they"?

[.... callchet ....]

7. Face reality

Just because you have it in the bank doesn't mean you don't have to help. Just like driving by the beggar on the side of the road. You are not relieved of the responsibility because you can drive by. Past that. Large amounts of money have to be spent to save the country and the world. Somebody has to pay and that is right. The twenty percent gains in the stock market have to be paid for now. It is patriotic to pay taxes. It is patriotic to support the country that has defended you for so long. Money has to be spent like the WPA, CCC and others.

[.... callchet ....]

8. Opinions from a 50 year study

Well, seems like you are preparing your defense for not trying to help for saying as I quote you

"It would be irresponsible in the extreme for an individual to forestall a personal recession by taking out newer, bigger loans when the old loans can't be repaid. However, this is precisely what we are planning on a national level"

That is exactly what we have to do to save the Nation and the world.

The money is in the bank. I guess your logic is that if you won the lotto you have no obligation to the country.

Money went up, the standard of living went down. Now is the time to reconcile that trend.

Look at inflation If you win a million dollars in the lotto, that million cost at least 20 million, now that's inflation.

But it is also " hope ". Nothing wrong with hope as long as it doesn't infringe on life. Fund the lotto from taxes. Give everyone a ticket. That way

no kids miss a meal.

Am I off the point. When the ship is sinking, is it wrong to pass out life preservers to everybody, even if they didn't pay the life preserver

insurance.