The Death of American Economy

I have really missed the boat. I need my government :paycheck". I agree, we are in serious trouble and if it isnt put in check soon, I am afraid of what may happen

I'm not so sure socialism will cause an economy to topple. I freely admit that I don't understand a lot about the intricacies of economics, but comparing Canada, which is far more socialist than the States, and seeing that our economy has not toppled, and even did really well during the recession, that's the conclusion I draw. But the States is set up quite differently, and it may be that the way the pieces of the puzzle interact for you mean that socialism will never work the same way there as it does for us Canucks. I'm sure you've seen me say elsewhere that our public systems are far from perfect and could use a lot of improvement, so I'm not bragging or saying Canada is way better than the States or anything, just pointing out some differences.

Benjamin Franklin warned that we shouldn't do too much for people. Shoot, there's an ancient proverb that also tells us that if we "give a man a fish, you feed him for a day; teach him to fish and you feed him for a lifetime." [i] I think the best way of doing good to the poor, is not making them easy in poverty but leading or driving them out of it. In my youth I traveled much, I observed in different countries that the more public provisions were made for the poor, the lest they provided for themselves, and of course became poorer. And on the contrary, the less was done for them, the more they did for themselves and became richer.[/i] (Benjamin Franklin, November 1766 Our children and grandchildren are not being taught to fend for themselves. They're being taught that there is always a government program to "fix" things and if there isn't, just complain to a Democrat and they'll make a new program with hundreds or thousands of employees. (Think about the cash for clunkers program. Thousands were hired to work that failure.) Our founding documents tell us that we should have equal opportunities to pursue happiness. The government cannot define happiness; that is something different for each and every one of us. And "pursuit of happiness" requires that we get out and do something, not that we sit at home waiting for government help. Schools no longer teach about the wisdom of our founders. Obviously, they're not teaching much math either, because I've actually had liberals tell me that the "rich" (defined by them, of course) should pay 110% of their income. Seriously. So many people are going about their lives in la-la land, thinking that anyone who is concerned about the economy is from some kind of "doom and gloom" cult. Some refuse to believe that we're in trouble. At another forum yesterday, I had a college professor tell me that the U.S. is not broke because we're still spending and we're still able to borrow from other countries. I'm sure he believes that. So, when we're no longer able to borrow, will he finally wake up? Will others?

Noooooooo...! It's not gonna happen... it's just not going to happen! If the US economy collapses & we down here have invested far more in the US than we have in any other country in the world, then where does that leave us? Hang on... just noticed this discussion was two years old... is it still relevent today, in the current situation? If so, read on, or else look away now! From here, correct me if I'm wrong, the US will turn the economy around very, very quickly from now on. Why? 1. The fiscal cliff thing... looks like there's now 100% chance of a 50% deal. Reading through that long speech of Ben Bernanke's, I get the impression that it doesn’t matter much what they agree on, so long as they agree on something, then the economy will be alright. If they don’t agree & the various pieces of legislation and sunset clauses kick in, then there'll not only be a 5% of GDP jolt to the economy, but also a catastrophic collapse in confidence in the ability of the nation’s leaders to be sensible – to even lead at all. That will as big an effect, and a more lasting one, than the fiscal contraction.What I mean is that, the deal will involve some revenue increases (not actual tax increases but loophole closures) and some spending cuts. There’s no way the US administration and Congress will do nothing at all to cut the deficit. The full cliff would represent a hit to growth of 5% of GDP; more likely is a hit of 1-2% and a longer term strategy to reduce the deficit. The good news is that the lift to business confidence from a resolution of the fiscal cliff uncertainty will almost certainly offset any reduction in government spending or increase in tax payments. 2. "Shale Gale". Says it all. We're the really stupid ones exporting the stuff by the shipload & charging our people export parity prices. In the US, the appearance of abundant cheap energy and the housing turnaround has been incredibly sudden. In the blink of an eye the US has gone from wallowing in the total collapse of the housing, finance and manufacturing sectors to an extraordinary renaissance of manufacturing, a rebound in housing and the steady recovery of banking and finance. America now has cheap money and cheap energy, probably the cheapest in the world of both. The effect of that on house prices and manufacturing investment can hardly be a surprise. 3. The US has a young, fit & well-educated workforce... just gunning to go. Down here, ours & Japan's workforce & population is very much aged in comparisson. 4. The US has the world's strongest corporate sector as well as housing the world's innovation headquarters. Lady, the way we see it, you'll be in boom times again before you know it, so get ready!

I agree we are on a crash course and not many people seem to care. Politicians at all levels say "we need to cut spending", "we need to balance the budget" but neither side is willing to get serious about making those cuts. The American people yell if their money is threatened but yet they cry out to their leaders to do something! We can't have it both ways. Cuts are going to have to be made. It will be painful for everyone but unless it is done, I do not see much hope of avoiding the collapse. I'm tired of both republicans and democrats, including our President, who talk out of both sides of their mouth. Quit talking and start doing.