Tuesday, April 21, 2009

Larger budgets are necessary in a recession economy.

FDR did it during the new deal when America was in the middle of the great depression as a legacy from Herbert Hoover.  Now Barak is doing it in a recession economy from George W. Bush.

It makes sense for the government to spend more money in a recession to keep the economy well oiled.  It ISN'T communism as some of Obama's detractors claim.  It is common sense.  T  he more money that is in the economy, the better it runs.

Now some people claim, rightly, "where is all of this money coming from?"  The truth is that it comes from foreign governments.  Now this could be problematic if they forclose on the United States, but they won't because they need us for trade.

The United States is the biggest buyer of foreign goods the world over and foreign governments want to keep it that way so they loan us money to help keep our economy afloat.  Now it's a lot more complicated than that, but I'm giving you a more simplified version so you will read it.

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