Class, today's lesson is going to cover the Barackian Theory of Economics, so please try to stay awake. The major cause of the economic problem facing our nation right now is that we (consumers) spent too much money. So consumers are no longer spending as much money because we've over-extended our finances. Because consumers are not spending as much money, businesses aren't spending as much money. There is no incentive for businesses to continue to spend money and produce for a market that is not purchasing, right? Therefore, because neither consumers nor businesses are spending money, the economy is slowing down.
Seems pretty straight forward, right? Now here's where the Barackian Economic Theory kicks in. Please try to keep up, and be sure to wrap your head in duct tape if you feel it starting to explode. In order to "jump-start" (don't you love that term?) the economy, the government needs to tax the consumers (who are over-extended already) and the businesses (who aren't profitable or producing because consumers aren't spending). The government then needs to take that money and give it to the banks in the form of a bailout so that...are you ready for this? Wait for it...wait for it...the banks can then give loans back to people who are over-extended and the businesses who aren't profitable, who will then be charged interest on the money that was theirs to begin with!!!
I'm no economist, but wouldn't it just be easier to let everybody keep their own money?
Please see previous post.