Basic economics, you fools.

Jarod

Jarod

Well-known member
Contributor
The recession is over, we are in the middle of an average recovery for a much worse than average recession. In two years things will look much better than they do today, and the budgetary shortfalls the states are facing will be much smaller. Radical action today will do much more harm than good.

I am not giving anyone credit for this, its the natural cycle of the economy. To panic now about the budget is a mistake. Deficate spending to end a recession is what almost all economists recomend and is what turned this one around. It is what got us out of the Great Depression and every recession for 100 years. Sure it will cause some bad inflation in the next two years, but that is the price we have to pay for what GWB did.

Plenty of people will jump on the national debt for political points over the next two years, but that is how the economy of first world nations work after recessions. Exploding the national debt is the only known cure for a deep recession.

To put it in simple terms, if you cant make any money and want to start a business so you can make some money, what do you do??? You BORROW money, go into debt, and start an enterprise, hopefully in a couple of years you are making money and can pay that debt off. If you are a government its bad for the economy if you make profit, so you pay off the debt and dont keep reserves. If you did not keep reserves, the next time investment is needed, you have to borrow money, thus exploding the national debt. One of the worst things you can do in a recession is to cut spending.

This thing about the unions is just that, some people using a perceved crisis to score political points against organized labor.
 
Jarod said:
The recession is over, we are in the middle of an average recovery for a much worse than average recession. In two years things will look much better than they do today, and the budgetary shortfalls the states are facing will be much smaller. Radical action today will do much more harm than good.

I am not giving anyone credit for this, its the natural cycle of the economy. To panic now about the budget is a mistake. Deficate spending to end a recession is what almost all economists recomend and is what turned this one around. It is what got us out of the Great Depression and every recession for 100 years. Sure it will cause some bad inflation in the next two years, but that is the price we have to pay for what GWB did.

Plenty of people will jump on the national debt for political points over the next two years, but that is how the economy of first world nations work after recessions. Exploding the national debt is the only known cure for a deep recession.

To put it in simple terms, if you cant make any money and want to start a business so you can make some money, what do you do??? You BORROW money, go into debt, and start an enterprise, hopefully in a couple of years you are making money and can pay that debt off. If you are a government its bad for the economy if you make profit, so you pay off the debt and dont keep reserves. If you did not keep reserves, the next time investment is needed, you have to borrow money, thus exploding the national debt. One of the worst things you can do in a recession is to cut spending.

This thing about the unions is just that, some people using a perceved crisis to score political points against organized labor.
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ok jarod....you make unfounded assumptions. hopefully? wow....what great faith you put in our government borrowing money. our government has been borrowing money whether we are in a recession or not. it has to stop. both parties are guilty of this.
 
Yurt said:
ok jarod....you make unfounded assumptions. hopefully? wow....what great faith you put in our government borrowing money. our government has been borrowing money whether we are in a recession or not. it has to stop. both parties are guilty of this.
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But the current rhetoric is about how badly Obama has borrowed. Its exactly what he should have done to combat the recession.

Government spending is not a problem, It leads to inflation and the fear over the past few years was the threat of deflation. Now I expect that inflation will be a problem in a few years, in fact I was wrong when I predected last year we would see it by now. When and if that happens, we can address the issue. For now its not a problem.
 
Yurt said:
ok jarod....you make unfounded assumptions. hopefully? wow....what great faith you put in our government borrowing money. our government has been borrowing money whether we are in a recession or not. it has to stop. both parties are guilty of this.
Click to expand...

Yes, both governments have been borrowing money. The difference is what the money is spent on.

It is always social programs that get cut in tough times and that's precisely the time social programs are needed.

As Jarod rightly explains now is the time to borrow for social programs and pensions and salaries.
 
Jarod said:
But the current rhetoric is about how badly Obama has borrowed. Its exactly what he should have done to combat the recession.

Government spending is not a problem, It leads to inflation and the fear over the past few years was the threat of deflation. Now I expect that inflation will be a problem in a few years, in fact I was wrong when I predected last year we would see it by now. When and if that happens, we can address the issue. For now its not a problem.
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and the rhetoric before obama was the dems whining about bush's spending.....and now you're claiming government spending is "not a problem"?

so the government can spend unlimited sums of money for anything congress and the president decide is necessary?
 
Jarod, you can't explain the past in coherent economic terms. But you can tell us in 2 years things will be better. Thanks for the comedy

Post by libtads claiming to explain economics are generally very comical
 
Topspin said:
Jarod, you can't explain the past in coherent economic terms. But you can tell us in 2 years things will be better. Thanks for the comedy

Post by libtads claiming to explain economics are generally very comical
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You are very funny, you pretend to be some economic guru who comes down from a mountian to laugh at anyone who expresses any opinion about economics, yet you are more like the wizard from Oz who hides behind a crurtian.
 
Where are the Jobs???

The only reason a lot of republican governors, congressmen and senators were elected in this past election, had nothing to do with cutting spending, it was Obama and the democrats, lack of creating jobs! Had the unemployment rate been going down, a lot of these republicans would not have gotten elected. The republicans and the people must remember, that Bush and the republicans, doubled the nation debt, with wars, borrowed money and tax cuts! All of a sudden the republicans have become fiscal conservatives after spending money like a drunken sailor under Bush!

Granted spending has to be reduced, but taxes has to be raised too! Unless the republicans start creating jobs real soon, they will be voted out too, next year! So to the republicans, where are the jobs??? These a$$hole want to cut programs that help the average person and nothing for business or the wealthy, they claim that's what the American people want, that's bullsh*t, they want jobs now! These states in a budget crisis, better raise taxes instead of going after unions, pensions, and healthcare benefits for public workers! The republicans face a backlash from the voters, for their asinine budget cut proposals and lack of job creation!
 
signalmankenneth said:
The only reason a lot of republican governors, congressmen and senators were elected in this past election, had nothing to do with cutting spending, it was Obama and the democrats, lack of creating jobs! Had the unemployment rate been going down, a lot of these republicans would not have gotten elected. The republicans and the people must remember, that Bush and the republicans, doubled the nation debt, with wars, borrowed money and tax cuts! All of a sudden the republicans have become fiscal conservatives after spending money like a drunken sailor under Bush!

Granted spending has to be reduced, but taxes has to be raised too! Unless the republicans start creating jobs real soon, they will be voted out too, next year! So to the republicans, where are the jobs??? These a$$hole want to cut programs that help the average person and nothing for business or the wealthy, they claim that's what the American people want, that's bullsh*t, they want jobs now! These states in a budget crisis, better raise taxes instead of going after unions, pensions, and healthcare benefits for public workers! The republicans face a backlash from the voters, for their asinine budget cut proposals and lack of job creation!
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Thanks, signalmankenneth, for proving that the public schools have failed, at least in your case.

Your union teachers must be proud.
 
Jarod said:
But the current rhetoric is about how badly Obama has borrowed. Its exactly what he should have done to combat the recession.

Government spending is not a problem, It leads to inflation and the fear over the past few years was the threat of deflation. Now I expect that inflation will be a problem in a few years, in fact I was wrong when I predected last year we would see it by now. When and if that happens, we can address the issue. For now its not a problem.
Click to expand...

i've seen something like this before. curing the disease by killing the patient.
 
spending trillions for a below average recovery is only good in a nutsucker like Jarod's book. But Jarod, please don't stop with the comedic economic post they are fucking priceless.
 
signalmankenneth said:
The only reason a lot of republican governors, congressmen and senators were elected in this past election, had nothing to do with cutting spending, it was Obama and the democrats, lack of creating jobs! Had the unemployment rate been going down, a lot of these republicans would not have gotten elected. The republicans and the people must remember, that Bush and the republicans, doubled the nation debt, with wars, borrowed money and tax cuts! All of a sudden the republicans have become fiscal conservatives after spending money like a drunken sailor under Bush!

Granted spending has to be reduced, but taxes has to be raised too! Unless the republicans start creating jobs real soon, they will be voted out too, next year! So to the republicans, where are the jobs??? These a$$hole want to cut programs that help the average person and nothing for business or the wealthy, they claim that's what the American people want, that's bullsh*t, they want jobs now! These states in a budget crisis, better raise taxes instead of going after unions, pensions, and healthcare benefits for public workers! The republicans face a backlash from the voters, for their asinine budget cut proposals and lack of job creation!
Click to expand...

Well said!!

First a huge mistake regarding the war with Iraq and then all the money being spent on contractors rebuilding what was blown up. Insanity!

All that happening while American cities are going to hell AND corporations are making a financial killing.

And people still vote Republican.

Sometimes there's just no point in trying to reason with folks.
 
democrats love to shoot themselves in the feet.

Corp making a killing right.
Who works for corporations?
 
Jarhead, I realize you probably live in an institution which takes care of all your finances and economic worries, but out here in the real world, this is how "economics" work... I make a certain amount of money each month, and I have a certain amount of debt to pay each month... If the amount I have in debt exceeds the amount I make, I am running a deficit. Now, I can float some money from my savings account to cover the overage for a while, but what happens when my savings account is depleted? Well, then, I can go to the bank and borrow some money to pay my bills. This will work as long as I have credit with the lender, but once I've reached a certain point, the lender is not going to loan me any more money... then what do I do about the debt which is more than my earnings?

You see, no matter what kind of fantasy world you live in, eventually it comes down to this, I am going to have to stop spending more money than I take in! At some point, I need to make more than I spend, so I can pay off the accumulated debt.
 
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