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And welfare programs themselves are far too small on their own to boost any general economy to full success. But they help, at least they give a small kick in the right direction for any lagging economy.
But that's not your argument, which is that food stamps and welfare stimulates.
Once again, NAME ONE town which has stimulated themselves out of poverty due to foodstamps and welfare spending..
Entitity A must use what they borrowed to produce more so they can repay B.
If Entity A refuses to repay or cannot, entity B confiscates whatever A pledged as security.
If there is no security and A cannot repay B, B then has a loss, and not only won't lend to A, loses ability to lend to A.
So, tell me, in this scenario, how does A (US Gov) borrow money, never repay, and never default, and the taxpayers not get their paychecks (security pledged for debt) confiscated?
Please, explain it to me. Use a straightforward cash flow and consequences / actions narration.
Not a single one of those theories works. Because reality does not bend to theory.
Also, the cashier, stocker, manager, farmer, immigrant picking food, truck driver, gas station clerk, the landlord, and on and on until it reaches the top.
Quote:
Originally Posted by pnwmdk
It came out of the mouths of a whole lot of people, and into theirs.
You may claim this is a moral action, or an immoral action. What you cannot say was that the money and the things bought with the invented money wasn't stolen from the producers.
With or without food stamps the gov will still take the same amount from my check, your check, and the CEO's check. The marginal propensity to consume is very high among food stamp recipients though.
But that's not your argument, which is that food stamps and welfare stimulates.
Once again, NAME ONE town which has stimulated themselves out of poverty due to foodstamps and welfare spending..
JUST ONE.
How about we change it from foodstamps to Medicare, SS, Tricare, and VA. Tucson would seem to be a good example with lots of seniors, lost of hospitals, a VA hospital and a military base. That's taking taxes and spreading them around
In the last 40 years, we have ceased producing in this country, and startd issuing IOU's without making anything. Since little is being produced, we have high unemployment.
Even producer are consumers.
Most economies are built on consumption. Right now China has a central command economy based on production. Most all of which was mandated and created via central policy and new money creation. Without the US as their consumers they would not have had the opportunity to move up from their rural 3rd world station. They are able to improve now because we the consumers created a reason for their business. China will now evolve over the next generation into a more consumer oriented society as we did last century. This will happen because their consumers will demand it.
We have high unemployment here and now because of the continued search for profits with typical capitalism. It is simply cheaper to produce abroad. And another reason is because of manufacturing efficiencies from technological advances allow industry to produce more while using fewer workers.
But despite this the USA remains a huge manufacturing and production powerhouse in the world.
Also, the cashier, stocker, manager, farmer, immigrant picking food, truck driver, gas station clerk, the landlord, and on and on until it reaches the top.
With or without food stamps the gov will still take the same amount from my check, your check, and the CEO's check. The marginal propensity to consume is very high among food stamp recipients though.
Defending the concept, because one tiny slice of a massive amount of it won't change your taxes... Is being dishonest.
I don't care if you call it "food stamps" "TARP" "obamcare" or any other stupid spending program.
Saying that one particular use of confiscated money is so good you should do it massively is all the same problem. It isn't true. If the concept doesn't work for hiring 30 million people to dig ditches and 30 million to fill them back up, it doesn't work for anything else, either.
How about we change it from foodstamps to Medicare, SS, Tricare, and VA. Tucson would seem to be a good example with lots of seniors, lost of hospitals, a VA hospital and a military base. That's taking taxes and spreading them around
Government debt is still debt. The growing debt is a drag on the economy multiplying the problems of those who need food stamps.
I won't say total nonsense as too many believe this and as such muddles the answer.
We recently had an economic disaster that was private debt based, not Federal. And this is where we need to pay attention and be concerned. Proper oversight and regulation so that doesn't happen again.
Growing Federal Debt means a growing economy. You have to have more money (debt) to grow. Otherwise we get deflation. More people, more business, more transactions in fact in a larger world, as the USD is the World's main reserve currency, means more debt. We rule the world with our debt. China is indebted to us much more than we to them!
"Cathcart grinned. "He got the cash money the same way we
have gotten all cash money since Roosevelt put the gold back in
the ground-right off the printing presses. But he didn't have to
print much of it. The checks were issued at the Bank and the
merchant and a great many others had accounts at the Bank and
very little cash money changed hands. The bulk of it was mere
bookkeeping entries, made by the bank clerks. Holmes had
implemented what the bankers had known for centuries but
were barred by LaGuardia from doing-taking money out of an
inkwell. What's the matter, son? Still not satisfied?"
"Well, I don't know. Everything you have said seems okay,
but how about this? If you keep pouring money into a country
indefinitely, you are bound to get inflation, fixed prices or no
fixed prices."
"You don't pour it in. You add just enough to keep it running.
Each fiscal period the additional amount is the closest possible
approximation of the amount necessary to prevent a spread
between consumption and production, based on the value of the
nation's inventories."
"But why do you have to keep adding money all the time?"
"I said I would stay away from theory but I'll give you this
hint to chew over: the amount necessary to add each period is
theoretically equal to the amount of savings invested as capital in
the preceding period. And one more hint: Doesn't it take more
money to run the country's industry now than it did when
George Washington was President?
Robert A. Heinlein
'For Us,The Living'
Written in 1934,not published until 2001.
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