@hawkeye10,
If we consider what our country did during WWII to build our military complex with deficit spending that far exceeded our GDP, the current spending for our country's security is peanuts.
What the media keep pounding into the public mind is the huge deficit spending by Obama during the first half of this year that now increased our deficit by over a trillion dollars. Yes, those a huge numbers for sure, but a good percentage of the spending is to help Americans with shelter and food by extending unemployment insurance, food stamps, and assisting homeowners keep their homes.
The way I view this spending is two-fold; 1) the spending actually helps Americans and their families/children, and 2) the alternative is unthinkable. It has also slowed down the landslide of our economy which otherwise would have slid into a high blown depression. That would have created more of a burden on our government with fewer workers paying taxes of any kind.
I do disagree with all the other extensions of social programs that could have waited until our economy improved.
The stimulus plan approved last February has yet to take real effect with creating jobs from the spending on our infrastructure which should take effect during this last half of the year and into next year. We should see some improvement in job creation.
When the government spends $1, the actual effect on our economy is many-fold, because money circulates from one business to the next. It has a cumulative effect that not only helps to stabilize our economy, but will eventually create the conditions to support it.
When a consumer spends $10 at the grocers, that helps the store's employees keep their jobs, and they in turn pay payroll taxes. All their suppliers also have somebody to purchase their goods which also supports the factories that make the products, and also the people who transport those products. This is a very simplified explanation of how money circulates to become an engine for the whole economy.
Many people still make pretty decent salaries and benefits in our country; they are the foundation on which we can grow our economy if things are done properly. Homes selling in the million dollar range are still active in our area. More people are taking advantage of travel deals being offered by travel companies today; I tried to make reservations for a cruise along the Norwegian coast for September, and most were already sold out.
As signs of an improvement in our economy becomes more prevalent, people will again spend their money as confidence increases. I was really amazed that we changed from a negative savings rate to over 7% in just one year.
Have faith.
