Do government deficits help or hurt the economy?

Discussion in 'Economy' started by CrusaderFrank, May 16, 2012.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Do government deficits help or hurt the economy? Which is it?

    Can it be both?
     
    Last edited: May 16, 2012
  2. TakeAStepBack
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    TakeAStepBack Gold Member

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    It can be both only to LOLberals.

    In reality, short term TRADE deficits, can help foster a growing economy. After that, deficits only lead to debt. That's when the currency debasement begins.
     
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  3. Mr Clean
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    Mr Clean Gold Member

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    I am not worried about the deficit. It is big enough to take care of itself.

    Ronald Reagan
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Wow. 78 views, 2 answer?

    Feel free to quote your favorite economist on the topic: Krugman, Samuelson, Corzine.
     
  5. TakeAStepBack
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    TakeAStepBack Gold Member

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    Those are witch doctors, not economists. :lol:
     
  6. Dot Com
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    Dot Com Nullius in verba Supporting Member

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  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Q to Dems: Are deficits good or bad?

    Dems: Yes!
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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  9. starcraftzzz
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    starcraftzzz Senior Member

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    Trade deficits aren't the same thing as government deficits.
     
  10. starcraftzzz
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    starcraftzzz Senior Member

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    Yes it can be both
    For example deficits that are due to building bombs so we can go destroy oil production in Iraq because we want war are bad; however deficits that are due to creating jobs in production food, energy and lifting people out of poverty are good.
    Furthermore there is a difference between deficits and a change in deficits.
    For example positive change in deficits (getting smaller) due to cuts in spending/and or increases in taxes is bad in a depressed economy that's in a liquidity trap with very low inflation. However positive changes in deficits during a period of spiraling out of control inflation due to cuts and tax increases is good.
     

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