Our current recession is caused by a rather large decrease in aggregate demand. The only way government can at all influence demand is by attempting to influence both the supply for goods, as well as but not limited to the supply of credit.

For example, if the US government wanted to make a certain substance illegal; for the most part that substance will automatically decrease in supply, and according to Say's law, that will create its own demand.

On the contrary, the demand for money/credit is at an all time high, but for some reason banks are not lending. Why? Because we are in a period of deflation that lacks adequate aggregate demand. Banks are now more willing to take a "holding" loss than risk potential default.

Of course, a truly transparent system would allow for banks to locate credit worthy individuals to get the ball rolling once again. The person(s) that create this type of system, whatever it may be, will be the next Bill Gates.
GoldenBoy812 Reviewed by GoldenBoy812 on . UAW's actions force bailout to die in the Senate The rest of the article can be found here: AP Source Rating: 5