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Originally Posted by spazlabz
Yes, the stimulus was a good thing even though it increased national debt, it supported the financial powers that be. Without them = total socio-economic collapse. However it failed on 2 major fronts and that is it has done nothing to improve the infrastructure which is in a serious state if degradation and it has completely failed to generate jobs on any level only, at best slowing the growth of unemployment. One of the problems, probably the biggest, with the American economy is that we have moved almost all manufacturing over seas.
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Actually, the stimulus was NOT good. It did NOT do anything other than create artificial growth and a false sense of security. The only people who believe we'd have a total collapse without stimulus are the government stimulus loving Keynesians. If we allow certain things to fail that are meant to fail, we would be out of the recession/depression cycles quickly. Deficit spending in the form of stimulus programs not only prolonges the inevitable, but makes the upcoming collapse even worse.
And yes, we used to be a manufacturing economy and turned into a service/consumption economy starting in the 70's. It's sad. That's why our trade deficit is huge.
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Manufacturing was the largest producer of 'middle class' jobs that kept the economic engine running. Give people money to spend and they will spend it. With the money being moved outside of the US by US Corporations they work against a strong healthy US economy. The divide between those with great wealth and the poor becomes wider and wider. Couple that with the apathy rampant in US society and you have a country of people who see no way out, think there is no way out and they are powerless to act on their own behalf
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Post WWII we experienced the greatest amount of economic prosperity in human history.