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Why you people so damn negative about government printing money and spending it. They print it out of thin air and spend it at 100% of the value. We should thank the government spending, because we will all become billionaires and trillionaires.
Just look at Zimbabwe, the richest country in the world. Everyone there carry trillions in the pocket. Some even glue those in the public wall like it is a poster. That's how wealthy the country is. How do they get so rich? Easy, the government just print money. Just thinking about these numbers make me rich.
*just in case people don't get it. I am trying to be sarcasm.
Don't get me wrong - spending cuts are necessary for long term growth. Just FYI, there is pretty much no way that major spending cuts by government at all levels won't have a profoundly negative impact on our growth in the short term.
Some of that government spending we like to condemn represents salaries for a lot of people who work with federal and local government in various ways - contractors, military, people working on infrastructure projects, police, firefighters, etc. When their income is now cut off, what are they going to do - apply for all the free jobs waiting for them in the private sector? They are now going to join the segment of consumers who are out of the spending cycle.
And it's not like the reduction of government spending is going to translate overnight into a wave of "confidence" for private businesses. Consumers and business investment are stuck in a vicious cycle now; consumers don't spend because businesses aren't hiring, and businesses aren't hiring because consumers aren't spending. So if all else is equal in the GDP equation (GDP = C + I + G + [X-N]), then if that G variable comes down drastically...GDP is going to tangibly suffer in the near term.
So...maybe it's necessary, but get ready for things to get better before they get worse. After the latest anemic Q1-Q2 GDP growth numbers, there's been renewed talk by economists of a much greater risk than previously thought of a double dip recession by the end of the year. I think the level of belt tightening by local and soon federal governments will definitely get us there.
I hope the Tea Party folks told you this in full disclosure when they proposed their platform of cutting government spending. With the way some people talk, it really seems to me like they don't know this.
it is true that spending cuts are really not cuts at all. but simply a reduction in the yearly increase of spending. I guess this means spending will increase even with the spending cuts!!!! only in America spending cut still means increase in spending. I don't see how this kind of cuts will hurt anyone. I hope liberal democrats told you this in full disclosure!!!!
Well, the thing that makes no sense about raising the debt ceiling only with dollar for dollar spending cuts... Is that it is NOT a 1-to-1 comparison.
It is a 1-to-10 (spending cuts to debt ceiling increase). They are multiplying their spending cuts by 10. They want to raise the debt ceiling by 2.8T for spending cuts equal to 2.8T over 10 years...
Yeah, that's great and all if we never had to raise the debt ceiling again. Fat chance of that happening. Cutting 280B from the budget yearly (if they even would do that) still doesn't exactly put us in the black... We'll need to raise the debt ceiling again anyway. What a waste.
The OP seems to be unaware that we never got out of the recession. There is no recovery. GDP has not only flat-lined but the outlook is negative.
The OP needs to learn history and understand that Keynesian economics has never gotten any country out of a recession but has lead them into depression. I've linked a youtube history/economics lecture a couple of times which discusses how the US got out of the 1920-1922 depression and it was NOT by printing more money, increasing federal spending, or raising taxes; infact, the opposite was Harding's approach.
This thread, like so many others, show how many on the left are economically illiterate. Sad really.
The OP seems to be unaware that we never got out of the recession. There is no recovery. GDP has not only flat-lined but the outlook is negative.
The OP needs to learn history and understand that Keynesian economics has never gotten any country out of a recession but has lead them into depression. I've linked a youtube history/economics lecture a couple of times which discusses how the US got out of the 1920-1922 depression and it was NOT by printing more money, increasing federal spending, or raising taxes; infact, the opposite was Harding's approach.
This thread, like so many others, show how many on the left are economically illiterate. Sad really.
And what do you know about economics? You failed to even read and comprehend my post! Nothing I wrote was even a defense of Keynes. At no point was I arguing for a second stimulus. If you had successfully read the FIRST sentence in my post, you would have understood that I started off by saying that spending cuts at this point are NECESSARY.
The OP seems to be unaware that we never got out of the recession. There is no recovery. GDP has not only flat-lined but the outlook is negative.
The OP needs to learn history and understand that Keynesian economics has never gotten any country out of a recession but has lead them into depression. I've linked a youtube history/economics lecture a couple of times which discusses how the US got out of the 1920-1922 depression and it was NOT by printing more money, increasing federal spending, or raising taxes; infact, the opposite was Harding's approach.
This thread, like so many others, show how many on the left are economically illiterate. Sad really.
Keynesian policies aren't economic policies, they're political policies. It's far more acceptable to say you're spending mountains of money to "help the economy" than to admit that your real reasons for spending are purely political...
And what do you know about economics? You failed to even read and comprehend my post! Nothing I wrote was even a defense of Keynes. At no point was I arguing for a second stimulus. If you had successfully read the FIRST sentence in my post, you would have understood that I started off by saying that spending cuts at this point are NECESSARY.
You also said that spending cuts would put us back into a recession but thats not at all true. Allowing money to stay into the economy rather than handing it all over to the government, actually stimulates as well. What do you think people who would have been buying T-Bills, will do with all of that money?
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You failed to even read and comprehend my post! Nothing I wrote was even a defense of Keynes. At no point was I arguing for a second stimulus. If you had successfully read the FIRST sentence in my post, you would have understood that I started off by saying that spending cuts at this point are NECESSARY.
