Discussion in 'Economy' started by CrusaderFrank, May 16, 2012.
Do government deficits help or hurt the economy? Which is it?
Can it be both?
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.
I am not worried about the deficit. It is big enough to take care of itself.
Wow. 78 views, 2 answer?
Feel free to quote your favorite economist on the topic: Krugman, Samuelson, Corzine.
Those are witch doctors, not economists.
deficits don't matter (unless a Democrat is in the WH)
~ Dick Cheney
Reagan Proved Deficits Don't Matter* | Crooks and Liars
Q to Dems: Are deficits good or bad?
See the problem?
Trade deficits aren't the same thing as government deficits.
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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