new years' resolution: bailouts are for the NEW economy, not the OLD economy

[unblock]

the first rule of recessions is that they're all about shifting the workings of the economy from what no longers works to what will work in the future. old businesses, industries, and methods go out the window as businesses fail and new businesses, industries and methods emerge to take their place.

bailing out the failing industries and businesses is llike the classic bad general who always fights the previous war. in fighting the war you're actually in, you need to use the NEW technologies and strategies and tactics instead of the OLD ones. so in bailing out an economy in a recession, you need to fund the NEW businesses, industries, and methods rather than the OLD ones.

this will not make things pretty for the businesses that have to go, but the verdict is already in on them. a limited amount of bailout money is appropriate for the innocent bystanders of those implosions, but the vast majority (read, trillions) of bailout money should go toward the NEW, so as to give affected investors, workers and consumers new ways to invest, work, and consume.


bailing out the old stuff merely prolongs the agony. heavily funding the new stuff enables everyone to adapt quickly and to recover quickly.

[w4rma]

1. Agreed. (nt)

[aldo]

2. Sounds kind of similar to Chicago school shock and awe economics

In other words, evil, contemptuous of working people economics. I guess you're sure you and yours will glide safely through these times.

[unblock]

3. goodness me, sorry to hear you had so much invested in bear stearns and aig!

i did say that some of the bailout money should be used for the innocent bystanders, duh.

i'm a full supporter of unemployment compensation and i think it's entirely too little and too short in duration as it is, nevermind in a recession. i also think the government should better support retraining programs.

but the best help for working people is new jobs in the new economy, which is what i'm suggesting that bailout money should properly be used to encourage.