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An Economic Decision

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Around 1930, John Maynard Keynes discovered a revolutionary theory of economic management for the US economy. Prior to Keynes's theory, the government strictly adhered to a balanced budget policy of never over spending on domestic concerns, and only overspending in cases of war, which would be necessary for the survival of the nation. In cases of an economic depression, the US government would become restrictive and spend even less. Keynes's economic philosophy was inverse of the balanced budget philosophy. Keynes claimed that the only way to get an economy out of a depression was to stimulate spending throughout the nation, by lowering interest rates, which would encourage more people to buy things, to transfer money to the unemployed, to subsidise (pay money to) struggling industries such as farming and small business, and to provide free things to the poor. All of this spending would mean that the US budget would run at a deficiency. Keynes claimed that this kick start would allow more people to go back to work, which would generate more tax revenue and then more than pay for the deficit that it cost to pull the economy out of the depression. Currently, the US government still permits overspending. Yet, many politicians want to strictly enforce a balanced budget. Yet, if another depression occurs, legally, the US government, namely the President himself would not be allowed to give more to the poor, nor give more to struggling industries, nor even house the homeless. Now that you understand the back story of the issue, I'd like to here your position.
Do you believe that the US government should be allowed to overspend its budget.
Yes, it is necessary to have the option to do so to adequately stimulate a down turned government, or to simply stimulate the economy, if it seems like it may go bad, before it does actually slow down.
No, the government should not be allowed to overspend, because in boom times the government will still overspend, even though it doesn't need to.
It seems that the government should only be allowed to overspend if the government is experiencing an economic slowdown, but must balance the budget in a strong economic time.
I am not sure
Why do you belief the US government overspends? Pick all that you believe are true.
Politicians are merely acting irresponsibly
They are overspending to activate and maintain expensive policies
They overspend because they may not thoroughly understand the implications and how much it will cost to enact a new policy
They overspend, because they still understand that overspending still lifts the economy, even if they continually run at a deficiency, it is that deficiency that is continually allowing the economy and the tax revenue associated with it to grow.
I am not sure.
If the US government forced a police of no overspending. If the president had to have a balanced budget, what do you believe would happen to the US economy? Pick all that you believe would happen?
The US economy would stop growing or would significantly slow down its rate of growth
Nothing, the US economy is not overly dependent on government spending
Its hard to say, no one is sure. The economists are merely guessing at what will or will not happen.
The US government would be in better shape because it would not be adding to the national debt.
I am not sure
How would you vote?
The government is allowed to overspend whenever it likes to continually stimulate and allow the economy to grow
The government should only be allowed to overspend if it has been deemed that the economy is in a depression, or starting to experience a depression
The government must always balance the budget, regardless of the nature of the economy
Undecided
How would you describe yourself?
Wealthy
Upper Income
Middle Income
Lower Income
Lowest Income
This poll was created on 2007-01-19 03:52:41 by PoliticoMind