Ben Bernanke, Chairman of the Federal Reserve, recently posited his opinion that there should be a second effort to try and help the economy -- a stimulus package -- much like the one given around tax season as a reminder to re-elect everyone HOORAY.
The problem with that is, it simply won't work.
Though, to be fair, if the government were to give me a stimulus package, I'd be hard pressed to say no.
But the problem with this is it simply reinforces the base of American economics as a consumer market. Bad news bears.
There is a simple fact that gets in the way of this working for an entire nation.
--In order for one to make a profit, someone else must lose money.
A unit of currency is worth a certain value, and goods and services can be exchanged for certain amounts of said currency. Therefore certain people/groups own/control larger portions of wealth. If the number of currency in circulation does not change, then there is no chance of the nation as a whole gaining or losing money. If the amount of currency in circulation increases, then each unit of currency is devalued, and again, the nation as a whole sees no increase or decrease.
Adding in international markets only pushes the dilemma onto an international scale. The World as a whole will see no increase or decrease.
Economically, a new system must start, in order for these financial woes to fix themselves. De-regulated and regulated capitalism has shown its flaws. To go to systems resembling feudalism or things prior would be preposterous. Communism/socialism only made sense as a solution to the industrial world of the 19th and early 20th centuries.
What's next? Who's to say?
--Knuttel
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