Student Blog: Law, Markets, & The Role Of The State
WHY AMERICA NEEDS A RECESSION
After the great depression of the late 1930's, Americans learned a hard lesson. Thrift, fiscal responsibility, and savings replaced the rampant speculation and frivolous spending of the roaring twenties. It was also in large part due to the massive deficit spending of the second world war that helped to pull America out of the great depression.
Today, massive federal government intervention in the marketplace in the form of bailouts has for the most part staved off a potential financial recession, but like an overprotective parent who shields their children from the consequences of their actions, are they really acting in the best interests of their children? As it is often said, sometimes the best lessons learned are those learned through experience. If Americans don't truly experience the economic pain of unchecked borrowing and spending, will they ever learn?
Consider also the nature of the federal debt today. Not only has it doubled in the past several decades despite the tremendous growth in the American economy, but it is increasingly financed and held by foreigners. The question then becomes, is avoiding a recession really worth placing our economic security in the hands of foreign nationals and governments who have only their best interests in mind?
Americans have demonstrated time and again that they are a tough and resilient people. A recession might well be what is needed in to restore a sense of fiscal responsibility to this country, and without doubt would result in a stronger, more secure economic future than to sell ourselves short by taking the easy route.
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