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What does this have to do with your assertion that the money invested in 401Ks and mutual funds just sits there? The above response is a derailed train wreck.
And why is it that posters on C-D answer basic questions with stories about their financial success that have nothing to do with the issue at hand? There are about 200 self-proclaimed millionaires in the POC forum. Delusions of grandeur, methinks.
Let's say your 401- k could have been a bank savings account if interest rates were like 1980. Of course interest rates today are not high enough to be useful. So you save in stocks instead.
Gives back temporarily and contributes to debt for decades. Think long term or pay the price.
Nonsense.
Obama 1st Year - "Borrows" $850,000,000 from future taxpayers and gives it to a host of political hacks who squander it. Nothing to show for it except we now must pay taxes to cover the interest.
Trump 1st Year - Eliminates many overreaching Obama era regulations, puts America first instead of apologizing for it, passes historic tax reform. Economy generates $600,000,000 in new wealth in just Christmas season alone.
Let's say your 401- k could have been a bank savings account if interest rates were like 1980. Of course interest rates today are not high enough to be useful. So you save in stocks instead.
This still has nothing to do with what I said.
It doesn't matter whether you put your money in a savings account, a 401K or an index fund. Either way, the money isn't simply sitting there. It's being loaned out, being used to purchase U.S. treasuries, commercial paper, state and municipal bonds, etc. This is why savings translates into investment. The only way this doesn't happen is if you put your money in a mattress.
This is how we got on this topic anyway: you said that increased savings would slow down the economy. I countered by saying that consumption (buying movie tickets, shopping at H&M, buying a car, etc.) isn't the only way money gets into the economy.
Obama 1st Year - "Borrows" $850,000,000 from future taxpayers and gives it to a host of political hacks who squander it. Nothing to show for it except we now must pay taxes to cover the interest.
Trump 1st Year - Eliminates many overreaching Obama era regulations, puts America first instead of apologizing for it, passes historic tax reform. Economy generates $600,000,000 in new wealth in just Christmas season alone.
This speaks for itself.
Well, that assumes that the cost of stimulus was more than the cost of doing nothing.
Hmm. Wasn't Obama a US Senator who voted on every bill that affect the economy?
It goes back further than that. Clinton, Cisneros, and Cuomo set the stage for the 2008 financial crisis. Here's what REALLY happened, complete with links to the Federal Reserve's H.4.1s:
Obama 1st Year - "Borrows" $850,000,000 from future taxpayers and gives it to a host of political hacks who squander it. Nothing to show for it except we now must pay taxes to cover the interest.
Trump 1st Year - Eliminates many overreaching Obama era regulations, puts America first instead of apologizing for it, passes historic tax reform. Economy generates $600,000,000 in new wealth in just Christmas season alone.
This speaks for itself.
The Obama numbers are still wrong, and $600M spending is not $600M in new wealth. It helps to generate more wealth from some, but there has to be an equal amount of loss from another.
Unless - more new money is created in the process. i.e. deficit spending.
One thing is for sure -- posters don't understand the causes of the "Great Recession", much less the timeline on it - anymore today than they did while it was occurring.
No one thing caused it - it was a culmination of Laws/Regulations that began in the 1990's under Bill Clinton, combined with Loosey-Goosey banking regulations and LIES by Fannie & Freddie that eventually brought it all down ..... beginning in 2008. The "recovery" was slow and anemic - consumer confidence remained extremely low and Business Hunkered Down in hopes of a recovery at some point. The stock market was the only "safe" place to put money and I can tell you that was pretty scary, but no other options existed.
Let's be clear about one thing - Obama is gone, it doesn't matter who did what when.
Blame Bush if you like, or Clinton or Obama or even Evil Banksters - it's over now and what matters is going forward. We ARE going Forward with the best year in a Decade and it will only get better.
So buckle up and enjoy it.
TeamObama tried several things, Bailouts & the Failed Stimulus packages (which are still in the Budget and we pay every year for that Trillion Dollar Stimulus, which was a transfer of wealth to prop up States) - the slowest "recovery" on record. Most recoveries are a couple of years, not this one.
Recovery from the Great Recession Has Varied around the World |St Louis Federal Reserve - October 2015 In contrast, the U.S. initiated several fiscal stimulus packages, but they failed to stimulate job creation and infrastructure buildup because they were focused on consumer transfer programs instead. Although the U.S. performed better than Europe, the U.S. was not the best performer. China, on the other hand, not only adopted a serious fiscal stimulus package but was also successful in spurring job creation and infrastructure buildup; as a result, it recovered the fastest.
We spent a decade on "stimulus" based on consumer transfer ..... it resulted in some "recovery", but not in Growth, which is needed for a solid long term Recovery. That's what we are doing now - "job creation", Regulation reforms, Tax Policy to stimulate both Jobs and Economy and hopefully some sort of Infrastructure buildup. The Infrastructure Buildup is going to be very difficult because you can take it to the bank that the Democrats will do everything they can to stop that Legislation.
Consumer Confidence is back with a vengeance & while the Media is doing all they can to Negate that, it doesn't seem to be working. I look forward to an even better 2018 than 2017 - and 2017 was a Great Year. Data doesn't LIE, only Leftist Media and Political Hacks out of power LIE. Amazes me that these people openly HOPE for an American Failure, but they believe that US Failure is their only Path back to Power.
So be it ..... they will be left behind. This train is rolling.
(meanwhile, Democrat message -> Americans are worse off)
Democrats are having a hard time selling their negativism to the American people, who are reacting positively to President Donald Trump by spending their money.
This has been happening since right after the election in November 2016.
Since Donald Trump's election, markets jumped to record highs and continue to break records. Unemployment has dropped to near record lows. And this year, people have been saying, "Merry Christmas!"
The "politically correct" Administration is out and "political correctness" with it. We don't care if someone is "offended" by "Merry Christmas" and if they don't like a Christmas display on someones front lawn. We don't care if they don't like it when we speak of "radical Islamic terrorism." It is what it is.
America is back, and we're proud of our President and our country. We don't apologize for it. We don't need to. We have nothing to apologize for.
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