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  • Posted by RGrimes1987 3 years ago
    This has been true forever.

    You can see that when we face a economic down turn and the government gets involved the economy falls slower, which leads people to believe that it helps, but it also stays down longer and makes it harder for the economy to come back. I think that is why democrats and people that believe throwing money at the problem will solve the issue is that fact that it slows the fall.
    Its like giving someone a parachute when they are falling to the ground and telling them "look your doing much better than you were before I gave you this." Even though they are still falling. Sticking with the analogy when you land on the ground its still abrupt and you have to stay on the ground for a little bit and try and figure out how to get out from under the parachute and all that takes time. Then to get back up you have to try and climb back up and everything while carrying the extra weight and baggage of the parachute.

    Of course you would have to think of the person with the parachute as someone that wouldn't die if they didn't get the parachute, because the country has never really been in danger of being destroyed because of an economic down turn.
    I do believe that we will get to a point where a collapse will happen and the country will try to bail itself out and the country will be consumed and ultimately fall if the current trends keep going.
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    • Posted by Technocracy 3 years ago
      A good visual for this....

      Think of the normal economy as a group of people walking or running down a path. Now picture the initial government intervention as six inches of wet concrete. Each further intervention as another 3 inches.

      Everything slows down and the the alphabet soup agencies come in after to codify it and harden the cement with you in it.

      Talks much longer to hammer your way free than if they just left things alone in the first place.
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      • Posted by Solver 3 years ago
        That's some mighty expensive cement they use. Funny how they can buy so much of it using other people's credit cards.
        Don't forget, you have to registered those hammers with the proper alphabet soup agency.
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  • Posted by  $  jbrenner 3 years ago
    The best example of this was TARP. The housing bubble definitely was a result of government interference, as was the 1987 crash (the 1986 S&L bailout). The 1873 depression was definitely government-induced. Wasn't the great depression exacerbated, if not caused, by Smoot-Hawley? I can't think of a counterexample yet.
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    • Posted by RGrimes1987 3 years ago
      The funny thing about the bailouts is that the money never really goes where it is actually needed. Take the American Recovery and Reinvestment Act of 2009 bail out a few years ago. We have crumbling transportation infrastructure, but only 48.1 billion went to that. You would think that those would be real "shovel ready" jobs. For all infrastructure there was only a total of 105.3 billion allocated to it with about 400 billion allocated to hand outs and pork projects. Its insane!
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