Do government deficits help or hurt the economy?

[CrusaderFrank]

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

Can it be both?

 

[TakeAStepBack]

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.

 

[Mr Natural]

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

Ronald Reagan

 

[CrusaderFrank]

Wow. 78 views, 2 answer?

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

 

[TakeAStepBack]

Wow. 78 views, 2 answer?

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

Those are witch doctors, not economists.

 

[Dot Com]

deficits don't matter (unless a Democrat is in the WH)
~ Dick Cheney
Reagan Proved Deficits Don't Matter* | Crooks and Liars

 

[CrusaderFrank]

Q to Dems: Are deficits good or bad?

Dems: Yes!

 

[CrusaderFrank]

deficits don't matter (unless a Democrat is in the WH)
~ Dick Cheney
Reagan Proved Deficits Don't Matter* | Crooks and Liars

Topic: Here
You: There

See the problem?

 

[starcraftzzz]

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.

Trade deficits aren't the same thing as government deficits.

 

[starcraftzzz]

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

Can it be both?

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.

 

[CrusaderFrank]

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

Can it be both?

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.

How would you describe Americas current $1.3 Trillion deficit?

 

[Mr Natural]

Reagan deficit, good.

Bush deficit, good.

Obama deficit, bad.

And, of course, Clinton surplus, non-existent.

 

[regent]

As for trade deficits, America was a creditor nation for some time before Reagan and with the Gipper we became a debtor nation.

 

[EdwardBaiamonte]

cuts in spending bad in a depressed economy that's in a liquidity trap with very low inflation.

why bad, if the government cuts stimulative bubble spending the private sector can resume real sustainable spending so the recovery can begin!!

 

[EdwardBaiamonte]

Reagan deficit, good.

Bush deficit, good.

Obama deficit, bad.

And, of course, Clinton surplus, non-existent.

it was a Newt suplus. Republicans took over house for first time in 40 years and made Clinton say, "The era of big government is over". Newt got 32 states to sign his BBA. Today national debt would be $0
if not for libtards killing that BBA and several others since.

 

[Widdekind]

nothing is a one-size-fits-all cure-all. Government Deficits are a tool in the arsenal of the public (Government, speaking for public), appropriate for particular circumstances. When the economy stalls, and when nobody else from the private sector is borrowing, then money gradually decirculates (into savings), and the money supply deflates. Then Government can wade in, borrow up unborrowed credit, and spend the money on important public projects, to stimulate the economy.

Government over-spending is not, generally, beneficial

 

[EdwardBaiamonte]

nothing is a one-size-fits-all cure-all. Government Deficits are a tool in the arsenal of the public (Government, speaking for public), appropriate for particular circumstances. When the economy stalls, and when nobody else from the private sector is borrowing, then money gradually decirculates (into savings), and the money supply deflates. Then Government can wade in, borrow up unborrowed credit, and spend the money on important public projects, to stimulate the economy.

Government over-spending is not, generally, beneficial

too stupid!!! savings = investment in Econ 101 class one day one.

Too stupid!!! deflation does not occur from savings it occurs when the money supply shrinks, it does not shrink in a bank any more than it inflates when the government spends it.

Too stupid!! if government spending could stimulate an economy we'd never have recessions or depressions!!

See why we are positve a liberal will be slow.

 

[itfitzme]

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

Can it be both?

It is a stupid question.

Government spending and taxation affects the economy. The difference between government spending and taxation results in a decifit or surplus. A deficit or surplus doesn't affect anything. It is just an accounting number.

 

[Wiseacre]

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

Can it be both?

It is a stupid question.

Government spending and taxation affects the economy. The difference between government spending and taxation results in a decifit or surplus. A deficit or surplus doesn't affect anything. It is just an accounting number.

Really? A deficit has to be paid for one way or another. You either borrow more money or you print more money, right? Either way, there are consequences.

 

[bobgnote]

Governments buy shit and pay assholes. Not forever. In some cases, not for long.