Often Times, Political Decisions Aren't The Best Economic Decisions

Regrettably, most politicians care about their jobs little too much. There won't be any tomorrow if they are not in power tomorrow. In response to the severe economic recession in 2008, the U.S. policy makers introduced temporary programs such as Cash for Clunkers and Homeowner Tax Credit so as to encourage consumption and to prop up the housing market. While these programs would somewhat prop up auto and housing sectors, what the policy makers have done is to shift the future demand forward to create a temporary illusion of economic recovery rather than tackling the root cause of the problem. They have simply delayed the problem.  I'm afraid the recently announced extension of tax cuts will do the same trick.