The Obama's Administration's Economic Failure

Posted by naharazizi on Friday, October 28, 2011



If all this is to create economic growth was to spend billions and billions of Federal Reserve printing dollars, economic growth would be "no brainer". We would do exactly what Obama administration has done and everything will be dobro.Činjenica economic growth requires more than just spending money and printing money.

It requires an investment of money, reinvesting the profits it made​​, and repeated this process over and over again. This is called the "multiplier effect". By-products are a good investment: new products, efficiency in developing and manufacturing products, services and jobs. To date, there is no evidence that any money spent by the Obama administration has failed in any meaningful way to produce any of the above effects in the economy, despite administration claims that we can stop the decline and loss of jobs.

The Obama administration is trying its inappropriate way that the government try to do what the private sector is not the best, invest and do profit.Uprave plan doomed to fail because their goal has now become to make a profit. To do this, the government must become a competitor in the market, instead of the regulator on the market. It's as if the referee in the game to bet on a team that wants to win before the match referees. He will do his best to make sure that the interest in winning the igri.Vlada backed General Motors may cut prices of its cars to the point that they can cause competitors go out of business, and we then get a company car instead of three in the U.S. u. That would mean fewer jobs and more expensive cars of inferior quality.

Management must understand that this country is a competitor on the world market for businesses. It is necessary to attract business in this country, and not chase them away with high income taxes and excessive regulation. Corporations are what make the economy grow, not the government. Corporations are experts in investing, making a profit and reinvestment. And if the corporation does not do it well, it will go out of business -. And deservedly so

Obama administration gets "F" in ekonomiji.Trenutne policy will not cause economic growth. Instead, they will cause inflation. This inflation will initially appear as a growth, but in reality, it will only be new printed dollars into the market.

Printing money without economic growth has the effect of currently available goods and services seem to be worth more. We saw the first effects of inflation with the dollar losing one third of its value in the last six months. The reasons we have not seen a sharper decline of the dollar so far, 1) the economy is still relatively strong, despite the down turn, and 2) administration only began to spend billions of dollars have been allocated.

administration to reverse its course with regard to economic policy. This should reduce consumption, reduce corporate taxes and stop printing money. Cutting spending will help reduce debt. Cutting taxes will attract business to come to America. It is not printing money will allow the dollar to strengthen and lead to more investment dollars to reach the United States.