Today’s Recession

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When push comes to shove, I did not want to go completely off-base with these thoughts concerning Today’s Recession. However, I did not want you to think that they are an unimportant subtraction from the power of my ideas on this topic. I imagine that some of you think that I should get entirely lost while discussing Recession. Shall we look at some of the things surrounding the current recession?

Do you think the expected tax cut will put more spending money into the pockets of your customers, not to mention you as well? Don’t count your chickens yet. Today’s recession will get a lot worse, so much so that the tax cuts, rebates or whatever they call them won’t have much effect beyond paying for part of one debt cycle.

Of course, some people argue that a tax rebate will give people more money to spend, and, therefore, increase their demand for the products and services they want. This would, theoretically create more jobs and opportunities for small businesses to supply them with the things they want. I think that they may be somewhat mistaken about this. In my view, what I conceive concerning the tax rebates is that people will savor the money but that is will do little to quell the recession.

Let’s face it. There is a serious business recession right now. The federal tax receipts through the IRS will not be  anywhere close to the numbers forecast during more prosperous times. We also must consider the increasing expenses from the war in Iraq and elsewhere plus the ever increasing cost of entitlement programs due to inflation. These will also go far beyond what the GAO and CBO have forecast for 2008 and 2009.

Everybody wants to bank on the plans that the Federal government has created to allow us to spend our way out of the recession. The problem is that the rebate plan and other monetary plans involve spending money the Treasury doesn’t have in order to defeat this economic downturn. It won’t work but there will be considerable political pressure to print money due to unemployment rising during an election year.

It is funny to watch Members of Congress, the President and the Presidential candidates come up with schemes that they try to tell us will bring the country out of the economic downturn. They all have some miracle in their pocket that will fix everything that’s wrong, provided you elect them. While some of the plans have a little merit here and there, most only result in raising the national debt while doing very little in real terms for most people.

I know some of you won’t be surprised by this, but clear your mind and listen: That is the source of the recession problem right there.

Sometimes things aren’t as they seem, but this Recession goes far beyond this point. Drill this into your brain: It can’t go on like this for much longer and most politicians are a few bricks shy of a load when it comes to economics.

This entry was posted on Wednesday, December 13th, 2017 at 8:49 pm and is filed under Politics, Recession. You can follow any responses to this entry through the RSS 2.0 feed.

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