Posted on 03/10/2013 6:21:43 AM PDT by 1rudeboy
There are two basic approaches to fixing our crappy economy.
The first approach is called "austerity."
This logic for this approach rests on the theory that our economy is crappy because our government is spending more than it takes in and that the resulting deficit is creating "uncertainty." Once this deficit spending is reduced, this theory goes, uncertainty will ease, and confidence will return. And then our economy can recover in earnest.
The second approach is called "stimulus."
The logic for this approach rests on the theory that our economy is crappy because consumers are unemployed and broke and have little money to spend. Because consumers have little money to spend, this theory continues, the government should take up the slack and deficit-spend until unemployment drops and consumers have more money to spend. This government spending, in other words, will keep the blood flowing until the patient is healthy again.
Five years ago, economists were locked in a fierce debate about which approach was better--"stimulus" or "austerity."
Thankfully, that question has now been answered.
The "stimulus" approach is better.
Importantly, this question has not just been answered theoretically.
It has been answered empirically.
(Excerpt) Read more at businessinsider.com ...
What everyone seems to miss about “austerity” (why does no one mention the tax hikes that go along with austerity?) is the element of necessity. When you have no income, on going expenses, and nobody will lend you money at anything other than usurious rates, austerity isn’t a concept, it’s a requirement.
all of this is meaningless as long as the price of energy remains high for retail consumers.
High energy costs hurt the bottom, who need to spend most of their income to survive. Lower energy prices stimulates the economy because of the effect of a pay raise, by lowering costs for food, fuel, heat, lights, and lower prices on other energy intensive products like electronics.
So, all the stimulus in the world will not fix the economy...lower energy prices will.
Keynesian Economics is the belief that we have created a time machine that we can use to go into the future and bring back money without suffering any bad effects.
With a bigger bucket, we can take more money out of the deep end to put in the shallow end.
And we’ll all live happily ever after. :)
I view government spending, in accounting terms, much like intercompany income and expenses. That type of income or expense is eliminated in combined financial reporting, so at best, it's a zero-sum game. There is no net change in total income or expense. But with government adding their spending to GDP they are overstating GDP, because they took that money from the private sector.
But what are we to expect from a crooked government that changes the rules for reporting unemployment, and the CPI?
The 2012 CPI was officially 2.1%. Does anyone here believe that?
The entire premise of this article is wrong. Our economy is not broken. It is working exactly as the Globalist Banksters designed it to do. It is supposed to impoverish the American Middle-class and make them helpless and unable to resist the Bankster's One World Government.
If we had patriotic Americans in control of the government if would be very, very easy to change our economy over to one that actually benefits the American people. The hard part is taking back the government.
Did the “globalist banksters” drop the price of your book from $17.00 to $11.56?
Which can exist without the other?
Which can exist without the other?
Very, well-stated, EPU.
Life, faculties, production — in other words, individuality, liberty, property — this is man. And in spite of the cunning of artful political leaders, these three gifts from God precede all human legislation, and are superior to it. Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.
Yes, Bastiat again
(what isn't) Manipulated by Marxists BUMP!
I discovered a single word to describe the "ocracy" America finds itself in today.
Ineptocracy (in-ep-toc’ra-cy)
A system of government where the least capable to lead are elected by the least capable of producing.
This results in the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.
I don't think one can remain free for very long under such a system of governance. What makes it a colossal conundrum is pondering that the people favored this over their Constitution. A sign of spectacular ignorance.
All planned by american communists in the 20’s or earlier, and successfully implemented, knowing we would be like the frog in the slowly heated pot - be wholly unaware of our impending doom......
Henry Blodgett is a moron, a thief and a leftist. Nothing he writes should be taken seriously and history is rife with evidence of that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.