Depressed Economy: Smart People Spend Now, Save Later

Discussion in 'Economy' started by Dante, Jun 21, 2010.

  1. Dante
    Offline

    Dante On leave Supporting Member

    Joined:
    Dec 1, 2008
    Messages:
    52,463
    Thanks Received:
    3,324
    Trophy Points:
    1,825
    Location:
    On leave
    Ratings:
    +6,054
    Spend now, while the economy remains depressed; save later, once it has recovered. How hard is that to understand?

    But if we need to raise taxes and cut spending eventually, shouldn’t we start now? No, we shouldn’t.

    Right now, we have a severely depressed economy — and that depressed economy is inflicting long-run damage. Every year that goes by with extremely high unemployment increases the chance that many of the long-term unemployed will never come back to the work force, and become a permanent underclass. Every year that there are five times as many people seeking work as there are job openings means that hundreds of thousands of Americans graduating from school are denied the chance to get started on their working lives. And with each passing month we drift closer to a Japanese-style deflationary trap.

    Penny-pinching at a time like this isn’t just cruel; it endangers the nation’s future. And it doesn’t even do much to reduce our future debt burden, because stinting on spending now threatens the economic recovery, and with it the hope for rising revenues.

    So now is not the time for fiscal austerity.
     
    Last edited: Jun 21, 2010
  2. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    • Thank You! Thank You! x 1
  3. Zander
    Offline

    Zander Platinum Member

    Joined:
    Sep 10, 2009
    Messages:
    17,452
    Thanks Received:
    6,575
    Trophy Points:
    390
    Location:
    Los Angeles CA
    Ratings:
    +12,892
    Bleed them!!!!
     
  4. Dante
    Offline

    Dante On leave Supporting Member

    Joined:
    Dec 1, 2008
    Messages:
    52,463
    Thanks Received:
    3,324
    Trophy Points:
    1,825
    Location:
    On leave
    Ratings:
    +6,054
    Last edited: Jun 21, 2010
  5. Dante
    Offline

    Dante On leave Supporting Member

    Joined:
    Dec 1, 2008
    Messages:
    52,463
    Thanks Received:
    3,324
    Trophy Points:
    1,825
    Location:
    On leave
    Ratings:
    +6,054
    Krugman says now is not the time to raise taxes, and trolls like Dude and Zanderdufus go deaf. *eek!
     
  6. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    What Krugman didn't receive a Nobel Prize for is in the area of political punditry and hackery, which is what his screeds in the New York Slimes are.

    Your appeal to authority fails again.
     
  7. Zander
    Offline

    Zander Platinum Member

    Joined:
    Sep 10, 2009
    Messages:
    17,452
    Thanks Received:
    6,575
    Trophy Points:
    390
    Location:
    Los Angeles CA
    Ratings:
    +12,892
    I won a Nobel Peace prize too!!! I got it in a Cracker Jack box!!

    [​IMG]

    Krugman's answer to every problem is more spending. That didn't work? Ok, how about more spending? That didn't work? Let's spend more, but we'll call it a "stimulus". Still not working? We didn't spend enough.
     
    • Thank You! Thank You! x 1
  8. Kevin_Kennedy
    Offline

    Kevin_Kennedy Defend Liberty

    Joined:
    Aug 27, 2008
    Messages:
    17,590
    Thanks Received:
    1,581
    Trophy Points:
    205
    Location:
    Ohio
    Ratings:
    +2,027
    And F.A. Hayek won the Nobel Prize in 1974, and he would say Krugman is full of it. The problem with using the Nobel Prize as an appeal to authority is that there are too many conflicting ideologies who have won the prize.

    And furthermore, spending for the sake of spending isn't good for the economy. If it were, we wouldn't be in a recession in the first place.
     
    • Thank You! Thank You! x 1
  9. Dante
    Offline

    Dante On leave Supporting Member

    Joined:
    Dec 1, 2008
    Messages:
    52,463
    Thanks Received:
    3,324
    Trophy Points:
    1,825
    Location:
    On leave
    Ratings:
    +6,054
    2 USMB Dufus Dipshits incapable of debating a fly, let alone debating Krugman's arguments.

    Plus observing the usual USMB libertine with their old, partisan, personal attacks, which are driven by pure hate and ideological blindness, gets boring pretty quickly.
     
  10. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    Krugman's arguments amount to another blood letting and some boar vomit.

    If printing up a squillion dollars and spending it on crap nobody wants fixes the economy, we'd be out of this mess already.
     

Share This Page