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Old 01-01-2020, 09:55 PM
 
27,075 posts, read 29,562,842 times
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Quote:
Originally Posted by Dave_n_Tenn View Post
Balanced budget amendment is the only way.
You're probably right. Most states are forced to balance their budgets. They use creative accounting to get around those rules, but for the most part, the rules have the effect of forcing the hard decisions to be made.
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Old 01-01-2020, 10:40 PM
 
15,748 posts, read 8,486,957 times
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Quote:
Originally Posted by Dave_n_Tenn View Post
Balanced budget amendment is the only way.
That would be a disaster. You have to use fiscal and monetary policy to dampen the inherent instability of capitalism. There’s nothing wrong with running a deficit and slashing interest rates in a recession. The problem comes when you do that in good times. There are no tools left in the economic toolbox to dampen the cycle so you have a really big thud.
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Old 01-01-2020, 11:02 PM
 
27,075 posts, read 29,562,842 times
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Quote:
Originally Posted by GeoffD View Post
That would be a disaster. You have to use fiscal and monetary policy to dampen the inherent instability of capitalism. There’s nothing wrong with running a deficit and slashing interest rates in a recession. The problem comes when you do that in good times. There are no tools left in the economic toolbox to dampen the cycle so you have a really big thud.
Which is why ultimately Keynesian economics will fail. It does not take into account human nature, which is to avoid making the hard decisions, running up debt in good times and bad--as has been happening in America and many other countries.
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Old 01-02-2020, 12:02 AM
 
Location: Silicon Valley
4,145 posts, read 1,884,307 times
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Quote:
Originally Posted by mysticaltyger View Post
Which is why ultimately Keynesian economics will fail. It does not take into account human nature, which is to avoid making the hard decisions, running up debt in good times and bad--as has been happening in America and many other countries.
Any system will fail, in ways we both can and cannot see. It's only the ability to self-correct that keeps an economy from destroying itself.

The sad fate of America will be when it one day realizes that everyone else realizes that we are all powerless to the Fed. Not sure who fired first, but between government backed entities and central banks....we're all being forced to centralize....and it's scary.
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Old 01-02-2020, 05:04 AM
 
2,770 posts, read 2,261,907 times
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Quote:
Originally Posted by GeoffD View Post
That would be a disaster. You have to use fiscal and monetary policy to dampen the inherent instability of capitalism. There’s nothing wrong with running a deficit and slashing interest rates in a recession. The problem comes when you do that in good times. There are no tools left in the economic toolbox to dampen the cycle so you have a really big thud.
Great post. We should not be running up huge deficits in good times.
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Old 01-02-2020, 06:56 AM
 
405 posts, read 183,338 times
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Originally Posted by mysticaltyger View Post
Why surprised?
It just didnt occur to me that you thought we might run into some kind of fiscal disaster.

Modern Monetary Theory seems to be working. Australia hasn't had a recession in 27 years. They just throw more money out there when the economy lags and the US says we can do it too.
I dont think its right but its up to the banksters that seem to be running the show.
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Old 01-02-2020, 09:03 AM
 
9,050 posts, read 9,697,070 times
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Quote:
Originally Posted by mysticaltyger View Post
Which is why ultimately Keynesian economics will fail. It does not take into account human nature, which is to avoid making the hard decisions, running up debt in good times and bad--as has been happening in America and many other countries.
Keep in mind I'm relatively conservative. Keynes, and I'm pretty sure I read and or studied every word the guy ever published about economics, didn't support the idea of endless deficits, nor huge ongoing national debt.
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Old 01-02-2020, 09:38 AM
 
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True fiscal conservatives--Libertarians such as myself--know that we are in no way, shape, or form in "boom" times. Quite the opposite. We are facing a currency crisis and it's not going to be pretty when it all goes to hell.
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Old 01-02-2020, 09:43 AM
 
848 posts, read 508,006 times
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Originally Posted by SWFL_Native View Post
We're talking about wholesale changes to our way of life and ripping off the band-aid; which will **** everyone off. If you want to know if something is working or the right thing for American then it's a policy that equally pisses off Dems & repubs the elderly and the youth. If you've made everybody angry and made them feel the pain then you know it's the correct solution.
Exactly right. Which is also why politicians will never do anything and keep on kicking the can down the lane. Their sole job is to get reelected to keep the gravy train flowing for themselves. Unpopular positions and votes on bills won't achieve that end.

Last edited by Flyers Girl; 01-02-2020 at 10:36 AM..
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Old 01-02-2020, 09:48 AM
 
Location: Florida/Tennessee
4,248 posts, read 4,724,769 times
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Quote:
Originally Posted by GeoffD View Post
That would be a disaster. You have to use fiscal and monetary policy to dampen the inherent instability of capitalism. There’s nothing wrong with running a deficit and slashing interest rates in a recession. The problem comes when you do that in good times. There are no tools left in the economic toolbox to dampen the cycle so you have a really big thud.
States do it. We have success to measure, we also have failure for reference. Perfect.

What's lacking is fiscal discipline. It doesn't take a genius to put the government on an allowance. Need more money? sell bonds, duh.
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