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I hope you conservatives are paying attention to what's been happening in Europe.
The short version is that over the last couple of years Europe and the United States decided to engage in a large-scale economic experiment looking at what is the best way to pick up a floundering economy.
The United States chose to do a very small amount of stimulus, i.e. Keynesian economics. Europe embarked on a program of austerity.
Now, the United States has had two-three consecutive years (depending on the sector) of economic growth, whereas Europe has come nowhere near a recovery.
I'm totally agnostic on what Germany should do, but the results are clear: Keynes works, austerity fails.
Correct, thing is they are all that is standing between the rest of the EU and finacial collapse. Once again, if that happens we are next, the world is interconnected economically and where one major sector goes, so do the rest.
I agree with that. But I do not believe Germany should bail out the rest of Europe. South Europe simply has to take the medicine now. It may take some time.
I hope you conservatives are paying attention to what's been happening in Europe.
The short version is that over the last couple of years Europe and the United States decided to engage in a large-scale economic experiment looking at what is the best way to pick up a floundering economy.
The United States chose to do a very small amount of stimulus, i.e. Keynesian economics. Europe embarked on a program of austerity.
Now, the United States has had two-three consecutive years (depending on the sector) of economic growth, whereas Europe has come nowhere near a recovery.
I'm totally agnostic on what Germany should do, but the results are clear: Keynes works, austerity fails.
You are talking about a 4 year period. Historically Keynesian Economics have always failed. And they will fail again. America has only 2% Economic growth with a 700 billion dollar stimulus package. Once those stimulus effects are gone very bad times are ahead.
Israel is telling Obama to get lost all the time and so will Germany. He can ask but his wishes won't be fulfilled. He acts like the empty suit he is.
Yes I know of economic diplomacy. Merkel will tell Obama in very economic diplomatic way to get lost.
No they aren't. They are throwing a hissy because they want MORE money for defense. Israel is telling us no such thing. We should tell them to get lost and quit giving them 4 billion a year for their defense.
He can to ask, and sometimes they will be fulfilled. Germany can't afford to keep bailing out the rest of Europe. Sooner or later, they will say no. The idea behind a stimulus is that it would prop up the union until the economy recovers. That is debatable.
Our issue in these United States, and why the President is asking Germany to float the bill, is that our economy is still somewhat weak, and if the EU collapses, there goes 25% of our countries business (clothing, automobiles, cellular phones, food, etc) all that demand will go away. This would flood our market with to much supply, making prices drop, but it also puts people out of work and then they can't afford anything.
So our economy is directly tied to Europe. The President isn't begging, he isn't telling, he is asking Germany to float the bill because he believes that a thriving EU is good for the United States.
The outcome of a EU collapse is debateable on the long term. But in the short term, it will hurt the United States. Thats why the President is worried about it, its why he is trying to do something about it, and thats the real situation.
You are talking about a 4 year period. Historically Keynesian Economics have always failed. And they will fail again. America has only 2% Economic growth with a 700 billion dollar stimulus package. Once those stimulus effects are gone very bad times are ahead.
This is exactly right. It's laughable that Obama and his media lap dogs are framing his policies as pro-growth. This article sums it up nicely:
Mr. pro-growth has an anemic record of growth. His answer is always the same: more borrowing and spending and easy money with the vague hope the economy will take off in the short run, and kick the can down the road for others to deal with the crushing debt service and inflation that is sure to follow. The author calls it neo-Keynesian, because I'm fairly certain Keynes would not advocate such a reckless debt/deficit spiral.
The neo-Keynesians also assume success in their models by assuming that each dollar spent by the government will have a postive multiplier effect, usually 1.5 or greater, on GDP.
The problem is, it has never worked out that way. Of course, the facts are brushed aside in favor of the message.
Noted Harvard economist Robert J. Barro has empirically studied the issue and notes that peacetime multipliers are essentially zero:
That's largelly because government deficit spending tends to crowd out private investment. And we all know the government doesn't spend those borrowed dollars very efficiently.
Where are you getting the 16 trillion number from? Source?
I'm not trying to be smart, just educating myself. I haven't read that number (please from a non biased source, with information on where, when, and how long a time table we are looking at here)
Link? How many years are we talking about? etc. I don't need a link to the federal reserve, I can do that myself. I want the anaylsis of the data, do you have that?
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