Obama says aiding economy trumps budget deficit

[Bindare_Dundat]

CHICAGO (Reuters) - The United States government should not worry about deficits over the next two years while spending money to jumpstart the ailing economy, President-elect Barack Obama said in a television interview that aired on Sunday.

Obama, a Democrat who takes over from President George W. Bush, a Republican, on January 20, said consensus had emerged between economists in both major U.S. political parties that expensive measures were necessary to avoid a deep recession.

"The consensus is this, that we have to do whatever it takes to get this economy moving again, that we have to -- we're going to have to spend money now to stimulate the economy," he told the CBS television network's 60 Minutes news program.

"And (consensus is) that we shouldn't worry about the deficit next year or even the year after; that short term, the most important thing is that we avoid a deepening recession."

[marcus]

How does spending money stimulate the economy? Sounds like a band aid on a deep wound.

[Hedgehog]

How does spending money stimulate the economy? Sounds like a band aid on a deep wound.

It helps in several ways.
If infrastructure projects are started it will create jobs, jobs that will give wages that enable spending.
If taxes are cut, it can give people more money to spend.
Spend money when in a recession - save when the economy is heating up.
Classic Keynes.

The problem is that during the last 8 years, USA has been overspending, despite getting the economy overheated.
Instead of raising taxes to curb the economy, Bush lowered them, thus steering the world economy right into a crisis.
 

[Soul Crusher]

How does spending money stimulate the economy? Sounds like a band aid on a deep wound.

He is going to use this excuse to ram down his health care care and welfare programs that we will be saddled with forever.

[Bindare_Dundat]

It helps in several ways.
If infrastructure projects are started it will create jobs, jobs that will give wages that enable spending.
If taxes are cut, it can give people more money to spend.
Spend money when in a recession - save when the economy is heating up.
Classic Keynes.

The problem is that during the last 8 years, USA has been overspending, despite getting the economy overheated.
Instead of raising taxes to curb the economy, Bush lowered them, thus steering the world economy right into a crisis.
 

Thats exactly what Americans need to do, spend more money, because it's not like thats part of the problem.

[Benny B]

Thats exactly what Americans need to do, spend more money, because it's not like thats part of the problem.

BD...so dumb. 

[Bindare_Dundat]

BD...so dumb. 

Piss off chump.

[Benny B]

Piss off chump.

Devastating 

[headhuntersix]

Obama backing off promises, gee that was fast.

[Soul Crusher]

Obama backing off promises, gee that was fast.

Reality will hit Obama very quickly.  he will have no choice but to govern from the center due to the facts on the ground.

His pie in the sky nonsense was only words to get himself elected.  The first time we are hit by terrorists, all his garbage goes out the window.

Its like Dwight D. Eisenhoser said, the minute the first bullet flies all plans go out the window.

Mike Tyson said something similar to the effect that once the first punch is thrown even the best plans usually go out the window as well.

Obama will have to govern based on the facts presented to him, not his college ideology and those demanding crazy nonsense from him on the far left.

[Hedgehog]

Thats exactly what Americans need to do, spend more money, because it's not like thats part of the problem.

I actually agree with your critique, and I think fiscal responsibility is crucial.
But when the economy is stalling, stimulance is needed.

Just as tax raises and rate raises are needed to chill down overheated economies and create incitements for people to save money, not spend it when the economy is going well.
So yeah, I believe in making people save more money, creating a budget surplus to have a buffert for the government to use in troubled times.
But right now - there's so much on the line if no efforts are made.
Check out Keynes and also how FDR was able to turn USA into the leading nation in the world in the 30's.     FDR may be the most underrated political leader ever, regardless of nation.

[Soul Crusher]

I figured out a way to both stimulate the economy and show my opposition to 0 at the same time.

I went to Gander Mountain and purchased a Remington 870 Shotgun and ammo for target practice. 

If millions of people did the same thing, we can get the economy moving again!