Austerity in America

iVillage Member
Registered: 02-15-2007
Austerity in America
17
Thu, 11-04-2010 - 12:03pm

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iVillage Member
Registered: 10-08-2010
Thu, 11-04-2010 - 12:51pm

I'm not sure what you mean my "private sector austerity program" and how it caused the recession.

iVillage Member
Registered: 02-15-2007
Thu, 11-04-2010 - 1:15pm

iVillage Member
Registered: 10-08-2010
Thu, 11-04-2010 - 9:53pm
Thanks for clarifying.

But doesn't it stand to reason that if people are cutting back on spending (i.e. lost jobs) that the private sector businesses would also follow suit? It seems to be a vicious cycle, cause and effect....if you will. No?

I would think that people want the government to reduce wasteful spending. After all, it is our hard earned tax dollars that are being spent.. A stimulus laden with pork spending isn't exactly what the taxpayers had in mind. Turns out there were no "shovel ready jobs" . America wants Washington to be honest. But the lies never seem to end....they just tell us what we want to hear. Both sides are guilty of this.
iVillage Member
Registered: 03-26-2003
Fri, 11-05-2010 - 8:59am
It is true--both sides are guilty of this. However, even Reagan knew that in a time of economic hardship one doesn't reduce government spending. When you reduce government spending during a recession you extend the recession. Unless of course we are going to abandon Iraq & Afghanistan and bring all that money back home--wartime spending rarely helps the home economy. (BTW--I'm not saying I approve of suggested abandonment. I'm just showing the biggest government spending cut that could be made without harming the domestic economy.)
Sandy
iVillage Member
Registered: 02-15-2007
Fri, 11-05-2010 - 9:41am

iVillage Member
Registered: 03-02-2009
Fri, 11-05-2010 - 12:15pm

I believe that this government has gone way beyond what they should have done in spending. The government's main function in a recession should be to

"Resist, we much. We must, and we much. About that, be committed."

iVillage Member
Registered: 02-15-2007
Fri, 11-05-2010 - 1:00pm

iVillage Member
Registered: 03-02-2009
Fri, 11-05-2010 - 2:37pm

I think I was not clear on what I meant by government jobs not producing anything.

I meant it in a sense that private sector jobs are created when companies need more employees to meet demand and grow the company. Companies generally hire people because that new job will bring in more income for the company than it costs to maintain that job. A profit situation.

That does not happen, generally, in the government. Government jobs are paid for through money collected from the private sector, and may not produce any income at all for the government, while draining money from the private sector. A loss situation.

"Resist, we much. We must, and we much. About that, be committed."

iVillage Member
Registered: 02-15-2007
Fri, 11-05-2010 - 3:14pm

iVillage Member
Registered: 10-14-2001
Wed, 11-10-2010 - 7:08pm

I think an austerity program is what is needed and what we will be forced to do, thanks to overspending.

"Austerity" can get you thru bad times and is necessary. IF we (and our government) had practiced this, we wouldn't be suffering today.

I totally believe that sometimes we have to have an "austere" time to get to good times.

Soliel

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