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Agree or disagree?
Completely disagree. In fact, spending is the ONLY way to get out of a recession. A recession is pretty much defined by the lack of spending.
I don't know about only. The market in theory should figured itself out and end a recession. It just is going to take a long, long time.
Agree or disagree?
Are you talking exclusively about government spending here, or spending in general?
Both. But primarily government. Some users here think that government spending cannot end a recession.
I present China right now as evidence they are wrong.
What kind of government spending, specifically, do you think can end a recession?
Virtually ANY government spending will help the economy in the short term, as long as it gets money into the economy quickly.
Even welfare spending? Paying people to be less productive will help the economy?
Absolutely. Welfare recipients spend money on consumer goods and services too.
Both. But primarily government. Some users here think that government spending cannot end a recession.
I present China right now as evidence they are wrong.
Hm. So if it's just a matter of getting money to people, wouldn't tax cuts be more effective, in that people would be able to actually choose what their money is being spent on?
What kind of government spending, specifically, do you think can end a recession?
China is also a phony economy right now. It won't be too long until they crash. Until time can prove either of us right/wrong.
Completely disagree. In fact, spending is the ONLY way to get out of a recession. A recession is pretty much defined by the lack of spending.
Your point isn't valid. Whether or not they crash is irrelevant. China is showing you can stimulate your economy with government financing. Their failure to do it properly does not invalidate my argument. And China isn't a phony economy. Unstable yes, but not phony.
And people who claim that government spending cannot build an economy should visit South Korea.
If that were the answer, then we would already be out of this recession,
apdst said:rather than looking at another big decline in the second half of 2010.
It can get you out of a recession, but government spending will just lead to another bubble. In this sense, you're not really spending your way out of a recession. You're just delaying the inevitable.