Quote:
Originally posted by FlyingIguana
there's some who will say during down years the government needs to pump money into the economy to get it going.
then, there's others who say that running a deficit will increase interest rates which cuts down on private spending. that offsets the good from the additional spending or tax cut.
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The government's job is to provide security and instill global economic confidence.
Businesses are responsible for expanding/building/R&D/creating jobs.
Banks know that if they raise interest rates during a resession/downturn/slump they risk losing business. Additionally, the banks are learning this when forclosures on homes goes up.
....I'm a bit high but I can explain further if you'd like.