I have been thinking about this a lot. If the federal government did a stimilus package of pure tax cuts across the board up to a trillion dollars instead of spending a trillion on garbage, we would be in a bull market right now.
I've been thinking that spending a trillion dollars that doesn't even exist in the treasury ends up meaning that money has to be printed and puts the government in a spiraling hole deficit.
1 trillion dollars in federal tax cuts would send a huge jolt to the economy. Imagine if you paid no or little federal taxes for a year, if you ended up keeping almost everything you earned for a year, we would be partying like it was the 1920's. Yes the government would be in a large deficit for a year, but after the trillion $ tax cuts were finished the government would end up seeing large returns from the prosperity from the rejuvinated economy. And at the same time, we stirred up a stimilus without having to spend money that doesn't exist.
The free market will work itself out. Government Motors (GM), AIG, the banks. Screw them, let them get destroyed or reshape themselves without our help. If a business can't fix itself, let it go under, and the free market will allow a more competitive and competent business to thrive on the loss of the incompetent business. If GM would have died, it would have made Ford even stronger, or a new American car company could have emerged because the competition has become smaller. No more bailouts. We are not a socialist country. Nobody is too big to fail.
What do you people think of this?
