by widgette.com
Could the current economic crisis lead to another great depression? The Minneapolis Federal Reserve Bank has released a study that suggests the government needs to be careful in order to avoid such a problem. Massive public intervention to maintain employment and investment, if they distort incentives enough, can lead to a great depression.
Business cycles can lead to an ordinary downturn in the economy. However, overreaction by the government can prolong and deepen the downturn leading to depression.
I believe the current stimulus about to be signed into action is wrong for our country as it does: contain overzealous and unchecked spending, contains an equivalency to earmarks (something President Obama said he would not allow, and that this bill did not contain), and is a partisan effort - as only three total Republicans cast a vote for it - which is another action contrary to what President Obama said he believed in. How can you be bipartisan and only get 3 votes from the other side?
I’m concerned that President Obama is quickly abandoning the promises he ran on to get elected and is now allowing anything and everything desired by the democratic party.
What does President Obama intend on doing to ensure that this money is spent responsibly and to reach across the isle to truly be a leader of the entire US, and not just thtop 5 most populous cities?