Deficits Don't Matter

['ol Perfessor]

Cheney gave it away during the campaign. He said just that, that deficits don't matter. The idea that governments don't have to balance the books is not a new one. What has to happen to continue the spend borrow cycle is that our economy has to keep expanding at a perseptible rate which it does when; the population grows,
( if it doesn't we increase immigration to offset abortions. We and Western europe did just that. We got the better deal with our illegals than they did with their Muslims),
productivity increases and interest rates stay low,
( rates stay low for obvious reasons to make it easier for business to expand and to make our payback of the money we borrow from our trade partners a negative rate. That's right we pay back less than we borrowed including interest because of our controlled inflation.).
So...... the upshot of all this is,( antique economic theories not withstanding), the 200 bil spent in Louisiana will be 1. spread out over a long term 2. taxes will be paid to the state, local and federal governments on the earnings of individuals and corporations engaged there. The area will be more productive. We can't lose on this deal. the'ol perfessor

 

[Annie]

[QUOTE='ol Perfessor]Cheney gave it away during the campaign. He said just that, that deficits don't matter. The idea that governments don't have to balance the books is not a new one. What has to happen to continue the spend borrow cycle is that our economy has to keep expanding at a perseptible rate which it does when; the population grows,
( if it doesn't we increase immigration to offset abortions. We and Western europe did just that. We got the better deal with our illegals than they did with their Muslims),
productivity increases and interest rates stay low,
( rates stay low for obvious reasons to make it easier for business to expand and to make our payback of the money we borrow from our trade partners a negative rate. That's right we pay back less than we borrowed including interest because of our controlled inflation.).
So...... the upshot of all this is,( antique economic theories not withstanding), the 200 bil spent in Louisiana will be 1. spread out over a long term 2. taxes will be paid to the state, local and federal governments on the earnings of individuals and corporations engaged there. The area will be more productive. We can't lose on this deal. the'ol perfessor[/QUOTE]


The polls bare him out. In any of them, deficit comes in last. People are more concerned with WOT, education, and other than deficits. Intrests rates are not spiraling, even gas prices aren't. Do you really believe that only gov't got the lessons of Katrina? No one will be filling up in the next 10days, waiting for the effects to pass.

 

[ScreamingEagle]

[QUOTE='ol Perfessor]Cheney gave it away during the campaign. He said just that, that deficits don't matter. The idea that governments don't have to balance the books is not a new one. What has to happen to continue the spend borrow cycle is that our economy has to keep expanding at a perseptible rate which it does when; the population grows,
( if it doesn't we increase immigration to offset abortions. We and Western europe did just that. We got the better deal with our illegals than they did with their Muslims),
productivity increases and interest rates stay low,
( rates stay low for obvious reasons to make it easier for business to expand and to make our payback of the money we borrow from our trade partners a negative rate. That's right we pay back less than we borrowed including interest because of our controlled inflation.).
So...... the upshot of all this is,( antique economic theories not withstanding), the 200 bil spent in Louisiana will be 1. spread out over a long term 2. taxes will be paid to the state, local and federal governments on the earnings of individuals and corporations engaged there. The area will be more productive. We can't lose on this deal. the'ol perfessor[/QUOTE]

Quote from Deficits don't Matter by Jonah Goldberg:

Dick Cheney allegedly said, "Reagan proved deficits don't matter." I say "allegedly" because Cheney denies he said it and the only other source is former Treasury Secretary Paul O'Neill's book. But whether Cheney said it or not, it's politically true.

Think of it this way, if the economy is doing great then voters don't care about the deficit. If the economy is doing terrible then people don't care about the deficit - they care about jobs, the stock market, property values, etc.



http://www.townhall.com/columnists/jonahgoldberg/jg20040305.shtml

 

[bush lover]

If our government can print money and borrow at will, then let's abolish taxes altogether. Without corporate taxes and taxes on our business investors, we will create many more jobs.
And let's privatize all government healthcare programs, including champis, medicare, medicaid, prescription drug, VA etc. Let's let people buy their own health insurance and get the government out of a private business.
And what's the best cure for $500 million bridges to nowhere? Privatize the freeways and highways.
What's the cure for crumbling water and sewer systems? Private enterprise. Get the government out of our lives altogether. Let private enterprise deal with infrastructure, health care, jobs and the like. Government is for political patronage and nepotism and that's all.

 

[ScreamingEagle]

If our government can print money and borrow at will, then let's abolish taxes altogether. Without corporate taxes and taxes on our business investors, we will create many more jobs.
And let's privatize all government healthcare programs, including champis, medicare, medicaid, prescription drug, VA etc. Let's let people buy their own health insurance and get the government out of a private business.
And what's the best cure for $500 million bridges to nowhere? Privatize the freeways and highways.
What's the cure for crumbling water and sewer systems? Private enterprise. Get the government out of our lives altogether. Let private enterprise deal with infrastructure, health care, jobs and the like. Government is for political patronage and nepotism and that's all.

Yeah, that sounds great!

Unfortunately excessive deficits really do matter...it's just that they per se don't matter much to politicians nor people in general who are orientated to their own personal stuff instead.

 

[The ClayTaurus]

If our government can print money and borrow at will, then let's abolish taxes altogether. Without corporate taxes and taxes on our business investors, we will create many more jobs.
And let's privatize all government healthcare programs, including champis, medicare, medicaid, prescription drug, VA etc. Let's let people buy their own health insurance and get the government out of a private business.
And what's the best cure for $500 million bridges to nowhere? Privatize the freeways and highways.
What's the cure for crumbling water and sewer systems? Private enterprise. Get the government out of our lives altogether. Let private enterprise deal with infrastructure, health care, jobs and the like. Government is for political patronage and nepotism and that's all.

Just for my own curiousity, how would you privatize the freeway infrastructure?

 

[The ClayTaurus]

Quote from Deficits don't Matter by Jonah Goldberg:

Dick Cheney allegedly said, "Reagan proved deficits don't matter." I say "allegedly" because Cheney denies he said it and the only other source is former Treasury Secretary Paul O'Neill's book. But whether Cheney said it or not, it's politically true.

Think of it this way, if the economy is doing great then voters don't care about the deficit. If the economy is doing terrible then people don't care about the deficit - they care about jobs, the stock market, property values, etc.



http://www.townhall.com/columnists/jonahgoldberg/jg20040305.shtml

People don't care about ANYTHING that isn't an immediate and tangible threat. The deficit will never be a concern until it explodes. People don't like to think about hypotheticals, which is unfortunate to some extent.

 

[no1tovote4]

Just for my own curiousity, how would you privatize the freeway infrastructure?

Toll roads?

 

[The ClayTaurus]

Toll roads?

God no. I HATE toll roads. Let me drive without having to stop all the time.

 

[no1tovote4]

God no. I HATE toll roads. Let me drive without having to stop all the time.

Nowadays you don't have to stop all the time. I have a toll-pass that I use on the local toll road, no stopping and often no traffic!

I wasn't making a suggestion though, I do believe that some things should be run by the government.

 

[The ClayTaurus]

Nowadays you don't have to stop all the time. I have a toll-pass that I use on the local toll road, no stopping and often no traffic!

I wasn't making a suggestion though, I do believe that some things should be run by the government.

Until the toll pass requires no reduction in speed, I'll be against toll roads. I didn't buy my car to slow down to 10 mph every X amount of miles, be it for government or private reasons.

On the flipside, I would like toll roads (if they didn't bottleneck traffic) because then the people who use them, pay for them.

 

[Toro]

Deficits do matter. Tell that to any bankrupt banana republic that deficits don't matter. What matters is the ability to pay the debt. You cannot go bankrupt if you have no debt.

 

[Mr. P]

Deficits do matter. Tell that to any bankrupt banana republic that deficits don't matter. What matters is the ability to pay the debt. You cannot go bankrupt if you have no debt.

Come Oct.17 you may not be able to bankrupt even if you do have dept. :

 

[BaronVonBigmeat]

If our government can print money and borrow at will, then let's abolish taxes altogether.

The government has fairly limited control over the federal reserve IIRC. The chairman gets appointed every 6 years, and congress gets to grill him once or twice a year. And that's it. The transcripts of their meetings are kept secret, and anything that is discussed or negotiated between the president and the chairman in their monthly meetings is kept under wraps too.

But borrowing/printing is just another form of taxation. It's especially awful because not one person in a thousand will recognize what's going on--they just know prices are going up and up. So who do they blame, the government-approved cartel that's inflating their wages and savings away? Nah, they'll probably blame "greedy corporations".

That's why the Austrian economists keep hammering home the same point--taxes, borrowing, and inflation all drag down the economy. In the end, the money spent has to come from the private economy somehow, someway. The only number that's worth paying attention to is total government spending.