Thread: A debt deal!

Originally Posted by GearsMcGilf

And LAM thinks he has the answer to everything no matter how dead wrong he is. lol

All I keep hearing you spout is stagnant wages and neo-liberal economics. You ever think that perhaps it is the Keynesian economic policies of deficit spending and out of control borrowing that brought us the massive deficit and debt that is now over 100% of GDP? Sure, the Obama admin didn't send us down this path, but they are sure as hell continuing down the same path. The facts are what they are. $800B in govt stimulus is spent and we're no better off than we were in 2008. Yet, Keynesian economists, like Krugman, are saying that we need another round of stimulus to get us out of it. Isn't that the definition of insanity? Keynesian economics has already failed. How much more proof do you need?

in recession keynesian policies are what's used by every single POTUS for about the past 100 years. it's the only method of keeping the economy alive in recession. even your precious Reagan used them in the 80's.

the FRB has done all it's can with monetary policy, interest rates are at 0%.

I never said I had all the answers. but I do believe in using facts and data vs mythology (supply-side policies) when it comes to problem solving. it's not like there is a giant bag of tricks to influence the economy that we have.

Paul Krugman said in '09 that the stimulus was to small to begin with, given the size of the economy that relies on personal consumption.

I think it's ultimately gonna take some real GDP growth to pull out of this. You have to create something new; some new industry to stimulate job growth. Pet projects and campaign war chests don't do it. Sure, repairing bridges and highways will put people to work temporarily, but it doesn't create anything new. I don't think we can borrow and tax our way out of this. When I was a banker, I saw so many people with their ass in a crack, trying to borrow their way out of it and it never worked. They just painted themselves further into a corner. Seems like that's the direction the federal govt is headed also. Sure, Keynesian methods have been used for decades, but look where we are. Look at Europe.

Originally Posted by GearsMcGilf

Sure, Keynesian methods have been used for decades, but look where we are. Look at Europe.

we were looking great the end of 2000, then the deficit exploded...

but you are right we need to see real GDP growth and we haven't seen much of that since pre 70's. this is when the US shifted from manufacturing to exporting capital and this bs consumption based economy.


U.S. Budget and Economy: Real GDP Growth

Originally Posted by LAM

we were looking great the end of 2000, then the deficit exploded...

but you are right we need to see real GDP growth and we haven't seen much of that since pre 70's. this is when the US shifted from manufacturing to exporting capital and this bs consumption based economy.


U.S. Budget and Economy: Real GDP Growth

I blame that on globalization and "free trade". We've been taking it up the ass from the Chinese, going on 20 years. American workers can't compete with Chinese workers that are paid slave wages. I know everyone laughed at Donald Trump and called him the AL Sharpton of the Repub party. But, he makes a good point when he raised the question "What's the worst thing that might happen if we levied a 20% tariff on Chinese products? We might actually have an industry come back at home." I know for a fact that they are already doing the same thing to us.

Originally Posted by GearsMcGilf

I know everyone laughed at Donald Trump and called him the AL Sharpton of the Repub party. But, he makes a good point when he raised the question "What's the worst thing that might happen if we levied a 20% tariff on Chinese products? We might actually have an industry come back at home." I know for a fact that they are already doing the same thing to us.

that's one of the reasons why the Chinese save 20% of their disposable. they are pretty fiscally conservative and will go with out before paying a high price for something they don't really need.

no revenue increases, looks like the republicans got everything they wanted in this one.

The debt ceiling deal’s net impact on jobs
The debt ceiling deal

Debt ceiling deal threatens deep job losses and lower long-run economic growth
http://web.epi-data.org/temp727/EPI-...eBrief_311.pdf