Debt Problems

More debt solves debt problem?

Not soapboxing here (too much :-) but can anyone explain how government dumping Trillions of Federal Reserve Notes (which are borrowed into circulation) into the economy AND borrowing at least another Trillion or two to redistribute via fake jobs programs, "investment" in education and lots of other stimulating things, is supposed to solve the basic problem, which is that our entire economy is based on debt and credit and is failing because it has overdosed on it?

Public Comments

1. It just stirs things up in hope to get it going again,
2. Doesn't make since to me either, never has worked at my house. I always thought to get out of the hole you had to stop digging. tribeca you make a good point with jobs the problem is these improvements are talked about with every administration, we just never see the or the improvements. Congress gets the money and it's never seen again.
3. That's what many misguided people believe. Once they have to take a wheelbarrow full of cash to the store for a loaf of bread they will realize the effect of this spending on the devaluation of our currency.
4. No it doesn't but the national debt problem is not our most serious economic problem right now. The economy is tanking and an economic stimulus for the economy is essential to try to help lessen the impact of the decline. Your characterization of the jobs program as " fake" is unfair. There are most certainly many areas of our infrastructure that have been neglected and that need to be addressed. Those are very real jobs.
5. Ever heard of the old saying "you have to spend money to make money"? It is so true in the business world, I bet there is some truth to it when it comes to the economy too. Other wise why would repubs, dems and economists agree?
6. They're loans. They are expected to pay it back. We need to make more stuff to sell to the world. Trade is this for that, it's not buy buy buy. It's going to end up that our money won't be worth crap, people won't trade goods for crap. In a way Obama's plan is smart. We're going to need machines to build and repair roads. That opens jobs. Hopefully after people start making money we'll get an industry boom, and it will attract foreign deals. I guess this is just a last chance thing. Cause in reality the best way to fix this crisis is to drop minimum wage and force Americans to make a lot less money. That would attract industry. It's how Mexico attracts, and China attracts. It's just plain and simple fact that if you don't have a job, yet spend money, you're going to run out of money. Sales jobs were up in America, and Industry jobs are falling. Now sales jobs are falling because no one in America is buying, and stores can't afford to hire people.
7. Without liquidity there comes bankruptcy. You have to keep "in business", or you are done. Why do most businesses fail? Lack of capitalization.