Obama, the killer of success.

The economy is bad, but compared to interest rates, inflation rates, and unemployment rates :
Nearly 20 % interest rates in early 1981.
13.3 % inflation rates
unemployment peaked at 10.8% in 1982, before going down to 5.0% under Reagan.
Compared to now :
3.5 - 5.0% interest rates in 2009
I currently cannot find inflation rates as of now, but it much better then in the 1970's.
unemployment rate is about 6.7%, the higest during the entire Bush term.

So Obama says, this is the worst financial crisis since the great depression, that is lunancy, his plans for another massive bailout will hurt American business even more, and is pretty much just a massive welfare buy out of Americans.

We need to do what Reagan did, cut taxes across the board, Obama wants to raise taxes across the board - especially with the capital gains tax, which will kill business.

Obama will not help at all, he says his plan will not help at all, so the democrats elected a man that has no plan that will work, and his the perfectionist of doom and gloom?

Here comes socialism.



Also, if you need to search anything on Google, please use the bar below:

Will Rate Cut Cause Inflation?

Of course if you took macroeconomics, the answer is yes... but there are a lot of factors at play.

1. The Fed will cut rates near 0%. This will undoubtedly increase the money supply and the liquidity of the markets. After the September 11th attacks, the Fed lowered rates to 1% and it spurred the housing boom... which led to the housing bust.

2. We're pumping in at least $700,000,000,000 into the economy. Considering our GDP is only about $11 trillion a year, this is a huge investment. This also increases the money supply and the availability of cash and credit.

3. Gas prices have dropped dramatically in the last couple of months. While this is good, all of the extra money that would have went in the gas tank is instead either being saved or being spent on consumer goods. That extra money being spent is being pumped into the economy, also increasing the money supply.

Naturally, these factors will help spur economic growth, which is also a good thing. However, when the economy begins to hum again, this excess money will still be floating around. Coupled with increased spending by a resurgent economy, this could cause severe inflation. Not to mention if gas prices again shoot to $4 a gallon. And if the economy is going well, state and the federal government may also dramatically increase spending. All of these factors could push inflation over 7% by 2011.

Yes, I took macroeconomics.