Riddle me this you financially gifted types

[Typical_08]

Here's my question, where does all this leave me?

Me being a college student. Myself and my peers, either right now or in a few years will be looking for jobs and trying to get ourselves started. Tons of people are losing their jobs so how are the new generations going to find jobs? "Mom and Dad" can't support us forever, heck a lot of people's parents can't financially support their college either.

The free market, if left to their own devises, is self correcting, as is our economy. If the government allows failing or bad businesses to fail, others pop up and replace them. In the case of the big three. If they are allowed to fail one of two things will happen. One they will restructure and get out of their bad labor contracts, and dump their bad CEOs. As they are able to get out of their labor contracts, they will be able to become productive again, and also, they will be able to hire and fire again, meaning they will be able to dump the leaches that were not earning their pay. Productivity shoots up. Quality shoots up. And prices drop. As productivity shoots up, and as prices drop, these companies can start to hire more people, and in turn, economy gets a small boost.

Now, if they are allowed to fail, and the parts companies decide not to extend them credit, then they will vanish (not likely that the parts companies will tell them no, they still need to make parts and make money). When and if they do vanish, car production will go down, causing a drop in supply, while demand stays high. So the price of a car will go up. In an attempt to pick up the slack, and produce more cars, other productive companies like Honda and Toyota, and will have to hire more workers, build new facilities, and buy more equipment. Supply will rise again, and will meet with demand, dropping the price back down. as there are only so many qualified people out there, these productive companies will hire them up quick. In the end, no jobs are lost, but new ones are created because of the need to create facilities and what not for the productive companies. But if bad companies are not allowed to fail, then the market will stay as is until acted on by a positive (business wise) force. Think about what happened during WWII.

That is the simple version, and is ignoring factors external of the U.S. that are also affecting us. But their impact is minimal compared to the problems we have caused on our own.

Now, something that the government can do to help, and it is proven to help, is lower what they take in taxes, but increase spending. This is bad for the budget, but good for the economy.

If left to its own devises. The economy will show marked improvement by the second quarter FY 10.

I still don't understand why the HECK people are still "paying" for 40k+/year private schools, by "paying" I mean taking out student loans up the yin-yang. Sorry if this is offensive to anyone but I just don't understand it. How is the having the "big name" on your diploma really worth being saddled with years and years of debt?

Because to make money, you have to spend money.