Nobel Prize-winning economist, Paul Krugman, in his NY Times column, writes about a great fallacy—that the worldwide recession can be fixed by cutting back, spending less, and letting it run its course. He believes that the only way to get a stalled economy going is a jump-start, like you jump-start a dead car battery if you leave your parking lights on overnight.
Swiss banks are now selling bonds with negative interest. You give them, say $10,000, and a year later you have $9,950. They don’t need money so make you pay them to hold yours. U.S. banks are heading that way too, already paying so little it means there is no money shortage here either, and no so-called “job creators” wanting to borrow. With stocks doing fine, profits too, why are these "job-creators" sitting on their money instead of putting it to work? Either they are paying it all to lobbyists to squelch any rise in tax rates for the rich, or doing exactly the wrong thing, clamping down, sitting tight, and letting the Bush Depression run its course.
After the Great Depression, Franklin D. Roosevelt tried to stimulate the economy but was fiercely opposed by sit-tight Republicans, just like the bunch opposing President Obama today. The result was a double-dip Depression that ended only when WW2 supplied a jump-start no one dared oppose.
Maybe another war is Mitt Romney’s solution as he yammers about an indefinite stay in Afghanistan and has bellicose words for Iran. But even if he manages to start another war (Heaven forbid its WW3), wars fought on credit make things even worse, like Bush’s toy war with Iraq. He lowered taxes on the rich and told Americans to go shopping and buy houses they couldn’t afford. giving us the crash of 2008 followed by the Bush Depression that Obama is still toiling to fix. And never forget that it is still the Bush depression.
As for Romney, what he says today can flip-flop tomorrow. And anyway, no words can jump-start a stalled-out U.S. economy. Obama can do that only by getting Congress and the Senate to go along. And that is up to the American people.