Ugh, I hate LJ. I just had this long comment which it ate.
Essentially, this would probably make things worse. This amount of money flooding the market would not already increase inflation, but it would decrease the value of the dollar, which are already at historic levels. Not to mention that $500,000 sounds like a lot of money, but it really isn't. This whole crisis was built on people spending beyond their means (companies and individuals alike)--giving everyone that much money would just entice them to do more of the same. The tax revenue would also go to superfluous endeavors with our current administration (like the war), and would probably do the same if McCain were elected. His financial plan is a mess...he would only drive the deficit higher--I don't care how much he claims he will cut from spending. It doesn't balance.
For some reason it made me split my comment...midnightsnack04September 27 2008, 22:48:13 UTC
That's not to say the bailout is a good solution either--really there is no good solution. We've far surpassed the point in which we could have changed the path our economy is on. The thing with economic theories is that they look pretty on paper, but it's impossible to judge how the real life market will react (and economists are commonly wrong--not to mention that Paulson and the Bush administration are not even economists
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Essentially, this would probably make things worse. This amount of money flooding the market would not already increase inflation, but it would decrease the value of the dollar, which are already at historic levels. Not to mention that $500,000 sounds like a lot of money, but it really isn't. This whole crisis was built on people spending beyond their means (companies and individuals alike)--giving everyone that much money would just entice them to do more of the same. The tax revenue would also go to superfluous endeavors with our current administration (like the war), and would probably do the same if McCain were elected. His financial plan is a mess...he would only drive the deficit higher--I don't care how much he claims he will cut from spending. It doesn't balance.
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