[sickoflibs]

RE :”I guess we can borrow and spend our way out of debt? “

Here is what he saying :

1) the gubment *borrows* and spends
2) those getting that money in jobs or stimulus checks or whatever, they spend the $$$
3) More people are needed in economy to service the increased spending demand
4) More people pay taxes, revenue goes up decreasing the deficit.
5) net effect is??? less deficit than if gov didnt do #1??

This is basically a (national debt) feedback loop that involves billion of
peoples (world economy) actions and reactions to these limited government directed stimulus: tax cuts or spending.

Sure, a major recession will cut revenues, sure stimulus in #1 will create a temporary increase in GDP and tax revenue, but beyond that...?. Beyond that they dont have a clue

In fact GWB tried this in response to a recession: huge increases in spending+ huge tax cuts +lots of Fed stimulus(interest rates+easy loans) = lots of stimulus, and it all blew up in 2007 to 2008 anyway.

Does Krug praise this? No, he says we didnt need stimulus under Bush.

[Liz]

Ohaha criticized GWB for doing this when a recession hit: huge increases in spending plus huge tax cuts plus lots of Fed stimulus (interest rates+easy loans), TARP........and it all blew up in 2007 to 2008.

Remember Ohaha's self-serving SOTU speech? Sounding like "he just took office" in January 2011 with a Republican congress. T'was that 2008 ex-Republican POTUS and Republican congress who screwed everything up.

Therefore Ohaha couldn't fix EVERYTHING with the Republican congress blocking all his GREAT ideas. NO MENTION of the years Democrats controlled everything---and nothing got done---unless you count Congress getting rich on insider info (/snix).

=========================================

In a fair accounting, President Obama is responsible (along with the then-Democratic Congress) for the $1.3 trillion in deficit spending in 2010 and the estimated $1.6 trillion in deficit spending in 2011. He [Obama] should not get credit, moreover, for the $149 billion in TARP (Troubled Asset Relief Program) repayments made in 2010 and 2011 to cover most of the $154 billion in bank loans that remained unpaid at the end of the 2009 fiscal year—loans that count against President Bush’s 2009 deficit tally.

The Treasury Department says that all but $5 billion of the TARP bank loans has now been repaid. The portion of repayments that was for loans issued in 2009 should be deducted from Bush’s deficit tally, not credited to Obama as deficit savings. There is some astounding number crunching in this article, and a chart of modern day president’s “average annual deficit spending” ........a frightening conclusion of what happens if Obama has an 8 year term.

[ding_dong_daddy_from_dumas]

Sure, a major recession will cut revenues, sure stimulus in #1 will create a temporary increase in GDP and tax revenue, but beyond that...?. Beyond that they dont have a clue.

Or at least some of the Dems in charge do understand it, and pretend they don't. But since GWB and the GOP got to spend borrowed money, it would be politically "unfair" for the Dems to be responsible. They think, and they may be right, that a bare, but growing, majority of voters, through ignorance or selfishness, will punish any party that they think is going to spend less than the other.

I can blame the Dems and GOP, but look at whom the voters elect.