BASIC ECONOMICS FOR THE RETARDS - About deficits

i was thinking along SR's reasoning....

also, watch out for inflation...it is simply unrealistic to think that you can continue and continue to deficit spend in order to boost the gdp....both data and realistic

as i said, i think we need to look more closely at the exports/imports
 
Also... the New Deal didn't bring inflation, and back then the inflation fear mongering was, if anything, greater than it is now. The New Deal was a massive increase in spending... and yet the economy was still barely above deflation for the first few years of it.
 
Watermark said:
Also... the New Deal didn't bring inflation, and back then the inflation fear mongering was, if anything, greater than it is now. The New Deal was a massive increase in spending... and yet the economy was still barely above deflation for the first few years of it.
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it is no more fear mongering that saying if we don't pass obama's stimulus we are going to end up worse than the depresssion....both are speculations
 
Yurt said:
1970s
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Deficit spending wasn't so bad in the 70's. It was mostly the feds monetary policy that did us in.

We have much lower interest rates now than they did then, but it's important to realize that we're in a liquidity trap, so our interest rates have little effect on inflation at this point in time.
 
Watermark said:
Why can't I put 1/3 of my car on the card? It's just pointless. They basically already do it anyway.
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Debt to subsidize debt? Sure why not it is the American way.
Or at least was. We shall see what the future brings. And I am not talking the next 6 months either.
 
Back when I was working my way through college, I was a cottage parent at a facility for the severely and profoundly retarded. Joe was this man of about 30, who had been institutionalized since he was a young boy. On Wednesdays, we had an ice cream vendor who came to our cottage, and sold the residents ice cream at half price. Some of the residents had family who would give them some coinage to buy ice cream, but Joe had no family and thus, no coinage. When I would come in on Wednesday, I would ask Joe... "You gettin' some ice cream today, Joe?" ...and he would look at me with this very sad expression, and pull his empty pockets out of his pants and shrug. Here's the economics lesson pinheads.... Even Joe, a 30-year-old severely retarded individual, understood, you can't spend what you don't have. Of course, I would always give Joe some money so he could buy ice cream, but he never asked me for it. When he was asked the direct question, he knew and understood, no money=no ice cream.

We are currently $10 trillion PLUS in debt... growing at a rate of $1 trillion per year, it will not take long for the interest to become so much of a burden the tax revenue can no longer support it. At this point, we are still spending money we don't have, WAY more money that we don't have, and WON'T have. The only way it can be done is by borrowing more from China, or printing it, or raising taxes dramatically. None of these options are desirable or sustainable.

I once thought the lefties were just mentally retarded, but I now believe the mentally retarded actually have more sense and understanding of economics. IBee can rip off his little smart ass threads all he likes, but he hasn't explained how the government can spend money it doesn't have. This is because liberals have this mental concept of Washington, where the US has this huge endless pile of money, and we can literally spend as much as we want to, we'll never exhaust the supply. It's the only way they could possibly justify their insanity!
 
Dixie said:
Back when I was working my way through college, I was a cottage parent at a facility for the severely and profoundly retarded. Joe was this man of about 30, who had been institutionalized since he was a young boy. On Wednesdays, we had an ice cream vendor who came to our cottage, and sold the residents ice cream at half price. Some of the residents had family who would give them some coinage to buy ice cream, but Joe had no family and thus, no coinage. When I would come in on Wednesday, I would ask Joe... "You gettin' some ice cream today, Joe?" ...and he would look at me with this very sad expression, and pull his empty pockets out of his pants and shrug. Here's the economics lesson pinheads.... Even Joe, a 30-year-old severely retarded individual, understood, you can't spend what you don't have. Of course, I would always give Joe some money so he could buy ice cream, but he never asked me for it. When he was asked the direct question, he knew and understood, no money=no ice cream.
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And Dixie... if he had gotten a loan, what would he have?
 
Yurt said:
GDP = C + I + G + (X − M)

how about fixing the X-M instead of deficit spending....and last i checked, no where in GDP is deficit spending....
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X-M is imports vs exports. That's handled by private industry. The government doesn't control that, except to promote it be lowering tariffs, which we've already done with free trade agreements.
 
ib1yysguy said:
X-M is imports vs exports. That's handled by private industry. The government doesn't control that, except to promote it be lowering tariffs, which we've already done with free trade agreements.
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no shit sherlock....how about fixing it as we have import/export imbalance
 
Yurt said:
no shit sherlock....how about fixing it as we have import/export imbalance
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Why don't you tell us how the government can go about doing that without you idiots also complaining about socialism and big government?

The government is already using the tools at its disposal to deal with those two factors, which are private sector problems.
 
ib1yysguy said:
Why don't you tell us how the government can go about doing that without you idiots also complaining about socialism and big government?

The government is already using the tools at its disposal to deal with those two factors, which are private sector problems.
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private sector problems CONTROLLED by the government....trade between nations is regulated as you already said....the government needs to slap some high tariffs on china but they won't becuase china gives us money to spend DEFICIT spending :)
 
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