December 4, 2008
Whilst all these ‘stimulus plans’ may have the best of intentions and be the most plausable idea to help the economy so far, exactly who are we ‘bailing out’ and ‘stimulating’?
At the core of this issue is one simple question: Since when did borrowing more money become the way to solve problems caused by too much borrowed money?
Now it seems that France is joining in…
The question for me is relatively easy. Are we ‘saving’ the economy from recession, jobs and growth, or the political leaders? Recession is a natural part of the economic process in the same way that death is a natural part of life. Death cannot be avoided, can recession?
If you listen to the great and the good worldwide, you could easily be lead to believe that an economy going into recession is almost a choice – and that avoiding recession is simply an act of will.
The reality is that the world is going into recession – probably a very deep one – and there is precious little that political leaders can do about it. That being the case, large amounts of additional borrowing will simply encumber future generations with debt. Should that be the way to avoid something bad now?
If it is, then it suggests that the obvious way to avoid climate change would be to run every car engine 24 hours per day. And we wouldn’t believe that could work…financialguy