Forum Post: We Need To Look To Other Countries For Examples
Posted 13 years ago on Oct. 25, 2011, 10:32 a.m. EST by Denofearth
(41)
This content is user submitted and not an official statement
I have personally been blessed to have had many people from outside America cross my path, and at each occasion I have taken the time to learn what their culture does differently. The French, so I am told have a novel approach to stimulating their economy. If the market hits a prolonged slump, the government sends out bonus checks to re-stimulate the economy, as they recognize that the working class can be counted upon to spend down the crisis, while banks only keep it for themselves.
Argentina has free education and free health care... politics push economy spending on infrastructure, 1 new nuclear plant, 1000 Mwatts on wind farm, coal, roads. Maybe sometimes overprotects local industry allthougt is not good , but is first time on 20 years that we reach 7% level of unemployee.
http://www.indexmundi.com/argentina/unemployment_rate.html
The unemploye rate came down after the Argentina crisis on 2001.
We tried that under GWB...worked REAL well :|
The problem is that government intervention only serves to delay the inevitable. By not allowing the larger corporations to collapse and fail, we have guaranteed that the smaller firms and local businesses will never be able to grow. If AIG, JP Morgan and other banks are not allowed to go out of business, then the smaller, local banks can never grow. When GM is saved, then there is less incentive for another company to try to enter the market as they will not have the sway to get the government to bail them out. The governments insistence on making winners and losers in the market is what keeps the recovery sluggish. While it would be extremely painful in the short term to let the larger firms collapse, it would be more beneficial to the world as other corporations would see the results of unfair practices and smaller firms would be able to grow and hire back the people who lost their jobs when the corrupt firms fell. The economy ebbs and flows, but the government feels it is necessary to try and only keep it flowing which only ensures that the hard times will be even harder.
Your logic only applies if all countries would do what you say. Most countries subsidize/support their car industries after an economic down turn.
If you want to guarantee there is no car industry in the US, and have to import all vehicles, you should do as you say.
Fair trade and tariffs would do better for the American worker than allowing corrupt business practices to continue. Again, government intervention only delay the inevitable. Besides, if the US auto manufacturers are not good enough to be profitable on their own without government support, then they shouldn't exist in the first place.
Then you will lose that industry to countries who do subsidize their car industries.
With fair trade and appropriate tariffs in place, there is no reason for a US manufacturer to lose out as our cars would be competitive here in the US. As for the overseas market, they would simply do as they currently do, which is to produce cars for foreign markets in foreign countries to keep costs down. Government backing is not the be all, end all of business.