We need to stimulate more now; however we must do it wisely. Today is not like the Great Depression. We stimulated then because we had no choice.
- As war was approaching we had no choice but to prepare for it. We would have had no future if we hadn't.
- After the war we were the last industrialized nation standing and the result was our economy boomed with no competition as the rest of the world was rebuilding and we were doing the building.
Today, the answer to the question of whether we should stimulate is less clear. Further, there is much more competition than after World War II and therefore, we cannot expect today's recovery to be as quick as the forties and fifties of the last century. This does not mean we should't try on three fronts.
- Implement a stimulus package that focuses on investing in things that will help us compete in the future, like transportation infrastructure and upgrading the internet.
- Address the debt problem. This would be a confidence builder. The American public watched as our leaders could not reach agreement on a long-term plan to solve the debt problem. Our citizenry are now doubting whether it will ever be fixed. This "confidence boogeyman" must be put to rest
- We must do more concerning the mortgage crisis and the precipitous drop in home prices. As home prices fell, so did the net worth of a large portion of our population. This should be addressed using very little of the tax payers money. More: Retribution