PeakTrader.com

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PeakTrader:

run75441, economics works regardless of time or space. Until 2007, the U.S. economy produced more output with fewer inputs and those freed-up inputs, including labor and capital, were employed to expand the economy. The result was a steep rise in U.S. living standards.

However, over the past few years, many government policies have prevented and slowed the employment of those inputs to expand the economy. So, there’s massive idle inputs, or resources, e.g. labor and capital. The improvement in U.S. living standards either slowed dramatically or declined.

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Also, the financial crisis and severe recession wouldn’t have happened if there were tax cuts, or reducing the national debt, from the huge trade deficits, rather than government directing money into the housing market, creating widespread “moral hazard,” and balking at “too-big-to-fail.” It was an ignorant, incompetent, and irresponsible policy.

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Moreover, it was unfair that only some Americans benefited from the housing market, e.g. using their homes as ATMs, and many of them benefited enormously for many years. A tax cut could’ve benefited all Americans.

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