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The OP doesn't want an explanation... he only wants answers that he and his side-kicks can tear apart.
STOP feeding the trolls
Absolutely. The OP (probably a person with too much free time on his hands and very bored) starts such threads, hoping to incite fires. But then disappears only to watch with pleasure (from safe distance) the flames. No, there is no genuine question here.
Because the government doesn't make money. It takes money. Government spending is just redistributing private spending. It adds nothing to the economy, it just redistributes it. It redistributes the money taken from tens of millions of private citizens according to the plans made by a handful of federal bureaucrats. When the money is spent by private citizens it is spend according to their wishes and therefore goes to companies which are producing goods and services that are viable in the economy. It's natural economy acitivity that over time grows the economy. Government spending is lump sum spending based on the government's priorities, not based on the laws of supply and demand. It therefore does not promote sustainable economic growth. Additionally, a portion of every dollar the bureaucracy spends is siphoned off to maintain the bureaucracy itself which makes it an inefficient use of resources.
But of course you weren't sincerely interested in the answer.
The government can indeed make money. Fact of life. And it does not necessarily lead to inflation. All of this has been demonstrated in recent years.
And it is likely that the use of much higher levels of stimulation would likely have minimized the recession...and have led to much lower debt growth.
It is also pretty clear that austerity does not work very well. See Europe.
The money the federal government spends is money that comes from taxes and fees. As they increase their spending, they need more taxes and fees. If members of Congress were tre fiscal conservatives, they would begin to cut spending on worthless projects, quit adding things to bills that aren't directly related to the original intent of the bill, order a reduction in spending in all areas of the government by no less than 5%, and reduce or eliminate taxes and fees no longer needed for their original intent. In the short term this will reduce jobs, especially in the government worker force. By reducing taxes and fees, they free up capital for business expansion through physical growth and or growth of number of employees.
Congress should work within the scope of their duties as defined within the constitution. The US Military should be used as was originally intended, for national defense, not for world police and international humanitarian missions. If a nation isn't our ally then withhold financial assistance. The United Nations isn't our ally so stop all funds to the UN. If a bank or major corporation is about to go bankrupt, let them. They'll either reorganize and recover or they'll fail and if there's a demand then someone will rise up to take their place. It's like financially supporting your children even into their 30s. At some point you need to cut them off and let them sink or swim on their own.
Its kinda a stupid question to begin with because anyone who thinks someone can give $1 to the government, and then spend the same $1 into the economy, wont listen to any responses anyways.
The same person believes that the only reason the economy grows, is because the debt grows, which is complete hogwash..
There hasnt ever been a moment in history that cutting federal spending hasnt allowed people to spend more into the economy for the simple fact that they now have more money to spend because the government isnt taking it.
Don't forget the OP is someone who claims the government can just push some buttons or wave a magic wand and make money appear in anyone or everyones account so there's no reason for him to want to cut spending - money is "free"!
Don't forget the OP is someone who claims the government can just push some buttons or wave a magic wand and make money appear in anyone or everyones account so there's no reason for him to want to cut spending - money is "free"!
The government can create money as it wishes. Potentially has impact but not necessarily a straight forward one.
Ain't real economics a pain? And it is reasonably clear that simple budget cutting is a brain dead strategy appealing to those who refuse to recognize that it is actually a lot more complex than that.
The government can create money as it wishes. Potentially has impact but not necessarily a straight forward one.
Ain't real economics a pain? And it is reasonably clear that simple budget cutting is a brain dead strategy appealing to those who refuse to recognize that it is actually a lot more complex than that.
Economics is complex. Government can print money. This doesn't mean mindless and massive deficit spending and piling up mountains of debt are good ideas. Cutting in a a recession is a bad idea IF the government can be trusted to pay down the debt when times are good again -- they largely can't. Ironically, the existence of people like the OP who want to grow the debt always and do the intellectual equivalent of close their eyes and go "la la la" to the consequences is the reason why you don't get more conservative buy-in to Keynesian spending when it would in the short-term be a good idea; because they don't want Keynesian management of the business cycle, they want a giant debt fueled party while pretending the bill won't inevitably come due. Not everyone is Iceland with the tab being held by foreigners and the ability to walk away and force someone else to pay for it.
....please explain how cutting spending will reduce unemployment and grow the economy.
It won't because we can just turn on the magic printing press and churn out currency at will. Everyone should be a billionaire according to all your posts. To sovereignty!!
Economics is complex. Government can print money. This doesn't mean mindless and massive deficit spending and piling up mountains of debt are good ideas. Cutting in a a recession is a bad idea IF the government can be trusted to pay down the debt when times are good again -- they largely can't. Ironically, the existence of people like the OP who want to grow the debt always and do the intellectual equivalent of close their eyes and go "la la la" to the consequences is the reason why you don't get more conservative buy-in to Keynesian spending when it would in the short-term be a good idea; because they don't want Keynesian management of the business cycle, they want a giant debt fueled party while pretending the bill won't inevitably come due.
I repped you a while back because you seem to be one of the few on the forum who understands that there are many tools in the economic tool box and which tool one uses depends on what one is trying to build or tear down. The current crop of Republicans reach for the saw regardless of what the task at hand may be and some Democrats seem incapable of using anything other than a hammer. And unlike most folks here you understand that all economic upswings or recessions are born from the same issue, as a result what worked in one cycle is not the penicillin to go to for the next.
The government can indeed make money. Fact of life. And it does not necessarily lead to inflation. All of this has been demonstrated in recent years.
And it is likely that the use of much higher levels of stimulation would likely have minimized the recession...and have led to much lower debt growth.
And yet our national debt has doubled in the last few short years.
And every time we cut federal spending, unemployment drops with it.
Quote:
Originally Posted by lvoc
It is also pretty clear that austerity does not work very well. See Europe.
Except for one simple fact, much of Europe hasnt cut spending, so if its not working very well, then what you are actually saying is increasing spending, doesnt work well, which of course we all know
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