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> and we can't just borrow our way out of the economic fallout Why not? The dollar is getting even stronger as the world rushes to our currency out of fear th
by darkarmani 7y ago
> and we can't just borrow our way out of the economic fallout
Why not? The dollar is getting even stronger as the world rushes to our currency out of fear that their currency will have even more problems.
The problem is that we didn't pay down our debt in the supposedly "booming economy" of the last 3 years. Cutting taxes during a boom was a supremely stupid thing to do.
- makomk 7y agoThere are a few reasons for this, but the obvious one is that all the factory, worker, machinery, etc time that has been forcibly idled is gone, destroyed, everything it would've produced does not exist and no clever financial tricks can fix this. There's of course a bunch of more indirect effectis involving mass unemployment, the collapse of many businesses, the failure of demand for things, etc which are also going to be devastating. The US is likely to come out of this better than many countries - it looks like the deaths from this economic destruction are going to be co ncentrated in developing countries - but that's not much reassurance.
- frockington1 7y agoYou could also say the booming economy was fueled by tax cuts. Personally I think the majority was from deregulation however the tax cuts did play a role