I question if you know what "subsidy" means. First of all, a full third of the stimulus was tax cuts. Another large chunk went directly to states who by state accounting got to use it however the hell they wanted to. There were no "subsidies" in the sense of a conventional "generate X units, we'll give you Y dollars" kind of deal.
You are somewhat right that when the money train of spending ends, the activity based on it ends, but that is no different then stimulating the economy via tax cuts. When the tax cuts ends, so does the activity. You are somewhat wrong on that last sentence. In a subsidy driven economy, ending the subsidy does result in hardship at the producer point. When a stimulus ends that is based on direct spending and tax cuts, that results in a wide variety of both good and bad outcomes, but it hardly the same as a subisdy.
That's not how a subsidy has to work.
There were definitely a lot of We will give you Y dollars in order to produce X amount of goods. There were also subsidies to to X amount of services that we have dictated. There were also subsidies which were incentives, such as the
He increased subsidies to states, in a reward based system for the amount of people they were able to increase welfare assistance to.
He increased farm subsidies.
His healthcare plan has a law in it in which anyone who buys into the subsidized insurance plan, has to pay a $1 fee to subsidize abortion...
Obama Law Requires $1 Abortion Subsidy From Every Insured American
He increased subsidies for purchasing a particular model of GM car... no conflict of interest there (coincidentally, after announcing how successful the car has been... they've stopped production because of lack of sales!). Now he wants to increase the size of the subsidy to $10K... why not hold out, since your government keeps caving on the deal, why not wait until you're provided a car as a basic right by the government when youre born :roll:
GM | Suspends Production | Chevrolet Volt | The Daily Caller
and yet he wants to end Oil Company subsidies...
That's socialism right there... Government controlling the means of production, and favoring certain industries.
I don't support cutting taxes... I support not creating new ones, which would hamper growth in a fragile economy...
I support simplifying the tax code, so we can realistcally move to a flat tax of somewhere between 10-15%. We need to eliminate loopholes, reduce error payments. In general, I am also for restructuring the IRS (if not eliminating it all together). I would also like to see them restructure the entire filing process. All our payment information is there registered throughout the year. They already have an expected filing. They should just run the taxes and issue them, and stop this damn filing requirement. Cutting amount of time and money spent on the filing and return process by both the federal government and the citizens would be a great benefit to every1. Forget all this BS about tax exemptions, tax credits, etc. It would end all this BS bickering about this crap, too.
The key is to just stop tinkering with the economy, and realize inequality is a basic fact of life. Let the economy recover on its own. Stop spending like money grows on trees (or rather exists as whatever you chose you want it to be). This is just one of the regular market cycles, and all this panic and tinkering has made it worse. The market will recover once the government removes its constraints and stops pretending to be its catalyst.
If the government wanted to act to solve the problem, it should acted to help those who were defaulting on their home loans, by creating a system to allow them to continue the payments until they could sell the house to someone who could afford the loans, and work on a way of eliminating the sub-prime mortgages. That would've prevented the fiscal collapse.
They didn't, so now they need to let the bright people in the private sector come up with their own schemes to get themselves out of it.
