Many of the Presidential candidates are proposing a short term economic stimulus package to try to keep our economy out of a recession.
If we go into a recession in the short term it will be due to the following things:
1. The high price of gasoline.
2. The fact that real estate prices are dropping and there is a "glut" of homes on the market.
3. The subprime mortgage problems and the number of mortgage defaults.
4. The reality that our trade and tax policy have forced our jobs overseas.
And many more reasons.
The main reason we are headed for a recession is the fact that Americans have overspent at have all levels of our Government. There is too much debt and it is not all going to be paid back.
A short term stimulus package would infuse money into our economy and this would tend to help prevent us from slipping into a recession; however, when we do slip into a recession it would make the recession worse...
We do NOT need a short term stimulus package. What we need to do is to:
1. Simplify our tax code and change it so it helps keep jobs here.
2. Change our trade policy.
3. Encourage Americans to save rather then to spend.
A recession is coming and it is going to be a big one. There is just too much debt in our economy and our politicians keep trying to "spend our way out of it."