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Originally Posted by Kamui4356
Ok, you don't think we should have propped up the market? What would you have liked to see happen? Make sure you list both positive and negative effects of this plan too.
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No bailout should have happened. The health care bill shouldn't have been passed. The negative would be a recession/depression back in '07-'08 much stronger than the one that occurred due to the failure of many businesses. The positive is, instead of pushing our problems down the road and making our already ungodly large amount of debt even larger, we would be on the road to recovery by now. Instead, we have made the problem worse and hyperinflation is a very real possibility.
You can't just avoid a recession by printing more money. That's not how economics works. There are up cycles and down cycles that are unavoidable. The big businesses should have failed according to true free market capitalism due to their own inefficiencies, instead the inefficiencies will remain; the free-market is apparently an illusion now. But that's the least of our worries because we have a possibility of becoming the next Wiemar Republic in terms of hyperinflation, due to the said overprinting of money and massive debt...
Quote:
Originally Posted by SaintessHeart
Logically speaking, the Gold Standard shouldn't be a problem if we have the technology to mine the mineral from meteorites and asteriods at that time.
Apparently we don't, so Keynesian economics is the next best solution we have after the WWII devastation and damage.
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The gold standard is based on ratios. You do not need a constant supply of more gold, the amount present in the world right now is just fine.