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Yellon hinting that it's time to wind down fiscal policy, and get debt growing more in line with GDP growth is not the same as her admitting that the sky is falling and we need a depression to purge the system. If it was true, I doubt a fed chairman would be so blunt as to say that in congress because it's not their place to dictate fiscal policy.
Debt levels can rise forever if debt increase is kept in line with GDP growth more or less.
Interesting analysis on the relationship between debt and GDP.
I guess that it would be foolish to lower taxes on the wealthy within congressional or Trump plans.
Interesting analysis on the relationship between debt and GDP.
I guess that it would be foolish to lower taxes on the wealthy within congressional or Trump plans.
It's simple. As long as you grow your income, past debts are easier to pay. A classic example is the huge debt to GDP ratio after ww2 or a student borrowing for college.
Which is why I think it's funny when people say you should spend 6 or 7 years in school to pay for it as you go. Those people of course, ignore the opportunity cost of forgoing wages for an extra 2 or 3 years and do not seem to understand that it's easier to pay off 30k of school debt than it is to work a low wage job and ensure you don't have too much debt. Why pay for something at 8 dollars an hour, when I can pay for it with 30 dollars an hour?
People simply don't understand debt. It's a tool that can be used for good....or for bad. The popularity of that Dave Ramsey guy is a prime example. Someone who avoids debt early in life will end off far worse off then someone who intelligently used leverage. His advice is terrible to pay cash for everything. TERRIBLE. And if you have any doubt, why don't Fortune 500 companies pay for everything in cash? Because leverage, used properly, will enrich you many times more.
Government debt functions much differently from household debt, but The United States should have used the money it borrowed during the Great Recession to provide a world class infrastructure to generate massive returns. Instead our useless congress...did god knows what.
Last edited by Thatsright19; 07-13-2017 at 11:35 AM..
What detail would I include to refute my own writing? Uhhhh. I wouldn't.
That would be up to the arrogant and bombastic person that essentially refutes everything with a trumplike"wrong. You're wrong"
OK. I will phrase it differently then. How is the so-called 'arrrogant and bombastic person' wrong in this case? What is he wrong about? That tax cuts for the rich aren't needed? Please explain.
OK. I will phrase it differently then. How is the so-called 'arrrogant and bombastic person' wrong in this case? What is he wrong about? That tax cuts for the rich aren't needed? Please explain.
To be honest, there isn't actually a way to respond back and argue against them because nothing of substance is provided. I can't really do what you're asking with them as much as I would like to on s discussion board.
This Economics forum thread is closed - proselytizing and personal sniping
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