Bush says sacrificed free-market principles to save economy.

US President George W. Bush said in an interview Tuesday he was forced to sacrifice free market principles to save the economy from "collapse."

 

 

 

"I've abandoned free-market principles to save the free-market system," Bush told CNN television, saying he had made the decision "to make sure the economy doesn't collapse."

 

 

 

Bush's comments reflect an extraordinary departure from his longtime advocacy for an unfettered free market, as his administration has orchestrated unprecedented government intervention in the face of a dire financial crisis.

 

 

 

"I am sorry we're having to do it," Bush said.

 

 

 

But Bush said government action was necessary to ease the effects of the crisis, offering perhaps his most dire assessment yet of the country's economy.

 

 

 

"I feel a sense of obligation to my successor to make sure there is not a, you know, a huge economic crisis. Look, we're in a crisis now. I mean, this is -- we're in a huge recession, but I don't want to make it even worse."

 

 

 

At a G20 summit last month in Washington, Bush resisted some proposals for global financial regulation and argued free market principles still held true despite the global economic downturn.

 

 

 

And administration officials have also referred to the primacy of the free market when discussing a possible government bailout for the troubled US auto industry.

 

 

 

In the interview, Bush said that a "disorganized bankruptcy" of the carmakers could create "enormous" economic difficulties.

 

 

 

But the US president has yet to announce how his administration will proceed amid calls from Detroit automakers and Democrats for a bailout drawing on funds set aside for financial firms.

http://www.breitbart.com/article.php?id=081216215816.8g97981o&show_article=1

He's going to sacrifice free-market principles to save a free-market economy?

He's going to sacrifice free-market principles to save a free-market economy?

He's done it before(think tax refunds). This isn't big news. Either way, he's doing what any competent economist would do, no matter the political orientation. Fiscal Policy! Although Congress is still grumbling about it and we might already be out of the recession anyways (doubtful, but possible).

maybe hes traumitized after being harassed by a size 11 shoe

maybe hes traumitized after being harassed by a size 11 shoe

Roflmao.

On Topic: If it saves the economy I'm all for it.

I dont understand the grammar in the title, but such things are usualy my fault so can someone explain what it means? Or else do i not fail and the OP got it wrong?

Anywaysss....a 100% free market fails. *goes into details about with no regulations dermerit good harming the society and environment would be produced etc.etc. no parks, NHS (wiki it), schools...*

If leading economists think it'll work, let's do it. I'm all up for saving the economy. :thumbup:

Let's hope it does work tho lol.

BTW, what will he do? the article doesnt say (or else it does and i fail)....

maybe hes traumitized after being harassed by a size 11 shoe

Thought it was a size 10?

maybe hes traumitized after being harassed by a size 11 shoe

 

Thought it was a size 10?

It was size 10

maybe hes traumitized after being harassed by a size 11 shoe

 

Thought it was a size 10?

 

It was size 10

IT WAS A SIZE 10

maybe hes traumitized after being harassed by a size 11 shoe

 

Thought it was a size 10?

 

It was size 10

 

IT WAS A SIZE 10

Hey, from his perspective it would have looked bigger by the time it got to him.

BTW, what will he do? the article doesnt say (or else it does and i fail)....

Traditionally, the government can spend money on infrastructure to pull the economy out of a recession. Usually, things like roads, bridges, schools, etc. However, Congress isn't exactly willing to quickly pass such spending because many times it can come too late. For example, the recession started in December 2007 and it may already be over (it's hard to tell). If it is already over, approval of infrastructure spending would just be fueling an expansion instead of pulling us out of a recession, which would make it money poorly spent. It's most likely not over though, just giving a speculative example.

Edit:

Good recent NYT article on the issue: http://www.nytimes.com/2008/12/17/business/economy/17leonhardt.html?em

Starting next year, the Obama administration is planning to spend hundreds of billions of dollars on public works and other programs.

The article also addresses the recent issue of deflation, which could cause some extra problems if it gets significantly worse.

Amazingly enough, I remember a $700 billion package only a couple months ago was meant to save the world economy. I wonder why it didn't work?

What makes you think this will "save the economy"? It's not broken - it enters a recession every now and then, and recovers on its own.

If it works, and it works in a such a way that helps the average American, why not?

It is a logical thing to do. Only a fool or an ideologue would do otherwise. Props to Bush :thumbsup:

Meh, there's never been totally free-market anywhere. The government still manages some production, albeit very very little.

Oh well. Sounds good.

Amazingly enough, I remember a $700 billion package only a couple months ago was meant to save the world economy. I wonder why it didn't work?

 

 

 

What makes you think this will "save the economy"? It's not broken - it enters a recession every now and then, and recovers on its own.

We've only spent half that package so far and it has helped. What we face now is a severe decline in business and consumer confidence. In simple terms, we need to increase demand and that is what Bush is proposing (fiscal policy).

The economy could recover on its own, but you would possibly be bankrupt or on the street by the time it gets out of the recession. So, yeah, we could just leave it be, but that would be silly and leave you splitting wood for sandwiches.

maybe hes traumitized after being harassed by a size 11 shoe

 

Thought it was a size 10?

 

It was size 10

 

IT WAS A SIZE 10

 

 

 

Hey, from his perspective it would have looked bigger by the time it got to him.

I didnt realize what size it was lol, i just took what size my brother's shoe was

:shock: that guy's feet are as big as mine!

What's wrong with a bit of government intervention?

Oh wait, I know.

That means the communists will win.

What's wrong with a bit of government intervention?

 

 

 

Oh wait, I know.

 

 

 

That means the communists will win.

Don't you know? They already won; Obama got elected.

Soon we'll all become evil and write literature.

Noes! Not the pinko liberal heathens!

What's wrong with a bit of government intervention?

 

 

 

Oh wait, I know.

 

 

 

That means the communists will win.

 

 

 

Don't you know? They already won; Obama got elected.

 

 

 

Soon we'll all become evil and write literature.

Satire doesn't translate well over the internet, I don't know if that was satirical or not :|

And i'm going to have to sum up all the courage I have here, to ask, whats free market and non free market principles?

Is it like War Communism during the Russian Revolution?

Amazingly enough, I remember a $700 billion package only a couple months ago was meant to save the world economy. I wonder why it didn't work?

 

 

 

What makes you think this will "save the economy"? It's not broken - it enters a recession every now and then, and recovers on its own.

This isn't a typical trade-cycle recession. It's the most significant financial event since 1929.

And i'm going to have to sum up all the courage I have here, to ask, whats free market and non free market principles?

 

Is it like War Communism during the Russian Revolution?

Free market = extreme capitalism, for the most part.

Non free = extreme socialism to communism, for the most part.

Middle ground is best.