Originally Posted by ijusluvit

I'm not an economist, but as a student of history I notice that whenever there has not been government intervention, economic downturns become crippling for the average American.

Before the federal income tax, a 19th century society of haves and have nots was becoming the norm. And the haves were a tiny number of aristocrats who controlled a huge segment of the nation's wealth. The have nots were living in essentially deplorable conditions. We romanticize about the pioneers, immigrants and workingmen now, but they lived at the mercy of the wealthy. Until the trauma of the Civil War had finally subsided and the excesses of the rich convinced the nation that we were not living in a democracy, the government finally became strong and united enough to begin acting to protect the rights of individuals and provide pathways of opportunity for the average American, despite the opposition efforts of the wealthy. Teddy Roosevelt seemed a decent candidate for President but became a turncoat to most of his aristocrat peers because of his fascination with the common man, including those who didn't bathe often and those who recently came from Europe pleading for refuge.

Post-war euphoria, lack of regulation, and unbridled greed created the Great Depression. Federal spending and regulation not only produced a dramatic improvement in economic conditions but it laid the groundwork for growth which wiped out the debt incurred in Roosevelt's work programs. The incredible infrastructure built by depression era workers provided the groundwork and tools for such productivity that we were able to change the outcome of a catastrophic world conflict and prosper to an unprecedented degree in post-war years.

Instead of signaling the decline of America, maybe the outrageous greed and mismanagement and the consequent deep recession is our opportunity to rebuild. If the government closes the loopholes which allowed financiers to steal billions and then puts millions to work rebuilding our infrastructure, I see the possibility of future prosperity. Spending billions on domestic projects using domestic materials and labor puts money in the pockets of millions of Americans who will then spend virtually all of it, thus further stimulating the economy. If the new administration makes reasonably sensible decisions in how to spend stimulus money, this huge investment in America could be the way we position our nation to a leading position in research and development of the world's future.

The bailout money already spent has gone directly to corporations. Why are we surprised that unemployment has risen sharply since those handouts. The answer is not to give money or tax cuts directly to corporations or the rich. They have never used it to directly create an economic surge. When the rich do spend they are strictly motivated by self interest. Often their investments are made outside the country and become detrimental to our national interests.

I only hope the Republicans in the next Congress are smart enough to add some good ideas and loyal enough to their constituents and their country to do what's right. I hope they will not simply be opponents.