Is the economic crisis caused by unregulated investment or is it in part to outsourcing work and importing?

February 7, 2010 by outsourcing · 3 Comments
Filed under: Politics 
outsourcing
ryanbarker8 asked:


Is it possible that we are sending more money and work out then we are taking in. Or is entirely the fault of overzealous banks and the SEC?

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Comments

3 Responses to “Is the economic crisis caused by unregulated investment or is it in part to outsourcing work and importing?”
  1. haitianredbone says:
    February 8, 2010 at 10:48 pm

    YES YES YES…THANKS TO THE BUSH CAMPAIGN AND THE FAILED BUSH POLICIES MCBUSH WILL CONTINUE! haitianredbone

  2. brown9488@att.net says:
    February 10, 2010 at 3:34 pm

    You give the wealthy a tax break so they have more money. But rich people don’t own businesses anymore, they own stock.

    They invest in a corporation, that has bought out the local manufacturer, and outsourced its production overseas. Their money goes to pay overseas workers in an overseas economy, who pay overseas taxes, which sell their products here, making the profits go back overseas.

    The wealthy get a dividend check which they don’t pay taxes on, and reinvest it in the corporation which starts the whole cycle all over again.

    I think you could say that outsourcing and importing, along with tax breaks for the wealthy, and the unregulated derivatives market, have pretty much put our economy in the tank. brown9488@att.net

  3. jdm says:
    February 12, 2010 at 4:15 pm

    I can’t get over this impression that all of this was created by a handful of rich white guys in Manhattan, but the government, they never have the wrong ideas.

    You could go as far back as Jimmy Carter (not trying to get partisan, but offering real insight) and the Community Reinvestment Act of 1977. From there, it became Clinton’s hot potato when he allowed for even more loans to go out to people who should’ve never gotten them all in the name of getting more people into home-ownership, which in-turn, became the same thing Bush was attempting…getting the most Americans into their own homes. Their attempt at building up that part of their legacy lead to the oversight of the overseers in Washington…the people who were the closest to Freddie, Fannie and the other GSE’s. Wall Street simply sat by, recognized what was going on and took full advantage of it. That’s not to say anyone in Wall Street is innocent…that’s far from the truth; but with so many people involved, there was no transparency, which is typical of a built up bureaucracy, and which in-turn leads to rampant corruption and that mentality of ‘we’ll fix it later’. Well, it’s later and the cards are falling. So that’s that part…not under-regulating as much as over-regulation (notice how more regulation seems to be the only answer ever offered?)

    To answer your second part much more simply…yes. We’ve become a nation of consumers and our biggest industry anymore is the service industry. We import everything we need and export our jobs, so yes, it also helped contribute to this current situation. jdm

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