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For the same reason that one can't cut one's way to full employment.
When there is a severe recession, unemployment is high, which reduces tax revenue and also drains government resources because of additional unemployment benefit spending, add'l Medicaid spending, add'l Food Stamps spending, etc.
Thus, the major objective should be to get back to full employment and move GDP to potential GDP as quickly as possible. The way to do that is for the government to replace lost demand. The chart below shows the gap between GDP and potential GDP.
Austerity is actually counterproductive in fiscal terms (as the Europeans are finding out): it depresses growth, so that the debt position becomes worse because tax revenue falls even more and more people require aid -- deepening deficits.
That is pure total BS - misinformation that is not based on fact or truth.
You didn't explain how to spend your way out of debt. All you posted was a bunch of nonsense!
Want proof ?? GO OUT AND BORROW MORE MONEY!! Lets see where it gets you personally (when you don't have a job).
Quit the liberal BS lying and deception Ok???
Just go do it and report the results. YOU WILL FAIL
When do statements end in question marks? I thought this guy loved America, so shouldn't he know how to use English as well as a second grader?
I thought these were supposed to be facts as well, not conspiratorial deranged birther ravings and already disproved lies.
Lord of the Rings was better grounded in reality...also less likely to lead to a lifelong obsession leading to an emotionally stunted and socially crippled life unable to deal with the real world.
You must have a short memory. You asked the same question yesterday and I posted the answer in post# 114 of this thread:l
That bs doesn't show any debt being paid!
The question was how do you spend your way OUT OF DEBT.
YOU .......... ;used deception, bs, CBO ? Communist Bull$hit OrganiZation.
Lets take a family that has the main breadwinner out of work; his house is to be foreclosed - Go out and borrow more & more & more.
Now show me without your stupid charts in easy to understand English how this is possible. YOU CAN'T because everyone knows THAT IS IMPOSSIBLE to achieve.
If a family can't do that simple magical feat. Then a country can't either especially when the regulation kardasian president attempts it.. HE TOO WILL FAIL.
...
You didn't explain how to spend your way out of debt. All you posted was a bunch of nonsense!
Want proof ?? GO OUT AND BORROW MORE MONEY!! Lets see where it gets you personally (when you don't have a job).
Quit the liberal BS lying and deception Ok???
Just go do it and report the results. YOU WILL FAIL
Well, established macroeconomics says that GDP is defined as:
GDP = C + G + I + NX
where:
"C" is consumer spending;
"G" is the sum of government spending;
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
If government "G" spends money it increases GDP. With a higher GDP, unemployment declines as there is higher demand. With more people employed, tax revenue rises and which more than covers the amount needed to be borrowed. It's very little different from a business that borrows to increase capacity to make greater sales.
Moreover, since the federal gov't can borrow at near zero real interest rates, the cost of doing what I propose is essentially free.
As I said, this is classical economics. The Europeans have diverged from this and are doing what you suggest, austerity. The result is negative, no or little growth in GDP that's resulted in stagnant economies, higher unemployment, that are making their nation deficit situations worse.
If you really want to learn about this stuff, instead of merely writing uninformed angry posts, I suggest that you enroll in some intro-economics courses.
This is more than voting your party on a ticket in a election.
He is damaging this country and everyone knows it that is what it should be about. Not Party lines.
Right ! He's a idiot who starts wars, ruins economies, and then doesn't have to will to help our nation. Lets be real we all know he's liberal so of course he will spend more than a conservative but the last conservative is the one who did true damage to America. Conservative practices of looking out for themselves has hurt a lot of middle and lower class families.
Now don't think I'm saying Obama has done everything right because he's done bad as well. I didn't even like the guy his first two years of Presidency but I think its fair to say Obama is the best candidate of all those running. Just about every conservative running wants to start another war, for what? Gasoline? Please as high as gasoline is I'd rather keep it at these prices rather than to invade the Middle-East for it.
I hate how Obama gave out handouts to so many companies, and I don't like how he spends but what else? He's not as bad as a lot of us make him seem, and to be honest I think its just a race issue.
Just show me some facts of how any of the Republican candidates plan on helping the nation.
Obama is:
-- the man who surrounds himself with and seeks the advice of only the radical left and worse
--the man who redistributes (loots) the earnings of the producers to the non-producers so they will continue to vote for him
--the man who is spending and manipulating the greatest country on earth into helplessness and ruin
--the man who speaks of "social justice" but never of freedom.
--the man who hates free market capitalism.
--the man who prevents the development of our oil, coal & nuclear resources.
--the man who rejects the Constitution.
--the man who initiates force against us all by “mandating” his vision of health care.
He is, at best, a cheap Chicago left-wing politician who cares only that he get re-elected to a position he is grotesquely unequipped for -- yet doesn’t take even that position seriously enough to read Economics 101.
When all else fails, copy and paste false talking points.
Foaming-at-the-mouth rhetoric. Such simple creatures, aren't they?
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Lets be real we all know he's liberal so of course he will spend more than a conservative but the last conservative is the one who did true damage to America. Conservative practices of looking out for themselves has hurt a lot of middle and lower class families.
