Unwise spending.

I have been bashing Obama for trying to solve our over spending problem by spending a bunch of money. I don’t know exactly why we’re nearly fifteen trillion dollars in debt, but I’m sure it boils down to over spending. Now when I play demo 2, I solve the debt and deficit crisis by spending a bunch of money on new policies. So I guess I shouldn’t bash the guy for spending loads of money, but hopefully he’s spending it wisely.

So I had to spend a bunch of money on new policies, but when I maxed out the slider, the gap between how much we made, and how much we spent, was much bigger. The trick seems to be to instate new policies, but not spend too much on them at once.

Obviously our nation has been spending unwisely, and while spending money may help the economy like it does in the game, even good ideas can go overboard.

I just wanted to comment on that, even though hardly anyone actually posts in this forum anymore.

Here are the real solutions

For our economy to recover one needs to know

Government always finds a need for whatever money it gets. - Ronald Reagan
Entrepreneurs and their small enterprises are responsible for almost all the economic
growth in the United States. - Ronald Reagan
Government does not solve problems; it subsidizes them. - Ronald Reagan
Government’s view of the economy could be summed up in a few short phrases: If it moves,
tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. - Ronald
Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a
hit man. - Ronald Reagan
No government ever voluntarily reduces itself in size. Government programs, once launched,
never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll
ever see on this earth! - Ronald Reagan
The most terrifying words in the English language are: I’m from the government and I’m
here to help. - Ronald Reagan
We should measure welfare’s success by how many people leave welfare, not by how many are
added. - Ronald Reagan

To remain free
Freedom is never more than one generation away from extinction. We didn’t pass it to our
children in the bloodstream. It must be fought for, protected, and handed on for them to do
the same. - Ronald Reagan
Freedom prospers when religion is vibrant and the rule of law under God is acknowledged. -
Ronald Reagan
Man is not free unless government is limited. - Ronald Reagan

The 2 main reasons we’re in this large debt crisis is

  1. Bush Tax Cuts of 2001 (If you notice in the game, if you cut taxes you can’t invest in things like education which help the economy)
  2. War in Iraq (Pointless war that we went into under false pretenses and botched intelligence)
    Also the economic state is something so complex, there are thousands, even millions of factors in play. Its not just something simple like “Overspending”, Sure that plays a part but you also have to look at the small things too, for example;
    If AIG using credit default swaps insures 100x the assets of AIG how will that affect the volatility of the market.

The economic collapse was for two reasons, one was too much government and the other too little.

  1. Too much gov; Insuring Wall St that there would be a bailout so they didn’t need to worry about the risks they were taking because it was all going to be backed up by the taxpayer
  2. Too little gov; Not enough oversight and regulation to monitor the amount of Derivatives trades that were going on or the illegal practices of Lehman Brothers and Goldman Sachs, or to monitor the bets that banks were taking out against their own clients.

So to recap, the economy is extremely complex and is driven by animal spirits and the artificial interest rates that the FED sets. Don’t just assume or blame someone or some political party without knowing what your talking about. Go through life with an open mind and if you don’t understand something, don’t pretend like you do.