Government Involvement in Recession?

by getting out of the way. cut taxes and spending. let companies that made bad business decisions fall.

Govt cannot help to "CURE" the recession because recessions isn't a disease.

Recessions occur because the Market is readjusting itself.

Market is readjusting because it invested into wrong places, the places where it shouldn't have invested, also known as malinvestment.

Malinvestment occurred because the economic calculations of businesses were distorted by creation of empty money by Federal Reserve.

So basically this problem is created by the govt, how can they intervene and cure it. Imagine if you drove around America using Google Maps, but the Google Maps have an issue with them and they show every distance lesser(or greater) than it is actually. According to it every road is reduced in length by 20%, so now you have taken all the wrong turns, and you are nowhere near where you are suppose to be and you are lost.

To ask how Govt can cure the recession is like asking how in the above situation Google Maps can get you to your right destination.

Solution: There is no solution to this recession other than to dissolve Federal Reserve, get back to Gold Standard, and allow all the companies which are going bankrupt to go bankrupt.

This is the shortest and the fastest way get back on track without facing another recession in few years.

Reality: The reality is that govt is as intervening as it was before. and in 6-7 years we are again looking at such a similar and major economic crisis.

You(personally) cannot safeguard yourself against next meltdown either, but if you want my advice than when next time you are earning loads of money don't spend it on buying new car, house etc or anything on a loan, but keep some money(in Gold form only, otherwise don't bother with dollars), for the troubled times away.

cut taxes on firms - which will encourage companies to expand and hire workers. Also, cut the capital gains tax, which will encourage financial investing.