Do government deficits help or hurt the economy?

[rightwinger]

FDR borrowed his way out of the Depression
Reagan borrowed his way out of the Recession

Obama was blocked from doing what needed to be done to get out of a recession

 

[EdwardBaiamonte]

Okay, so where were these increased taxes that Newt forced Clinton to make that accounted for the surplus?

You are an idiot, unable to make anything but meaningless over generalizations.

You have said repeatedly that Newt forced Clinton to balance the budget. So, back up your bullshit with some facts.

Where exactly were these cuts/taxes made that balanced the budget and account for the Newt surplus?

who said anything about tax cuts?? Strawman???

Republicans took over House for first time in 40 years, Newt got 32 states to sign up for is Balanced Budget Amendment conference. HE forced Clinton to lie and say, The Era of Big Government is over" that ought to give you some idea of the pressure libturds were under then to balance the budget!!

Gingrich rose to power in the House by working in opposition to Clinton's first two years in office and issuing his "Contract with America," a key provision of which was a balanced federal budget. After a stand off that resulted in two government shutdowns, Clinton signed the budget legislation in 1997.

Okay, let's go over the simple math again.

Surpus (-deficit) = Revenues - Outlays.

If Revenues - Outlays < 0 then to get to zero, either revenues must be increased or outlays must be decreased.

I did say, "increased taxes".

Increased revenues would be increased taxes. Decreased outlays would be cuts.

Do you really need every little detail spelled out? I thought you took Econ 101.

So, where were these revenue/tax increases and outlay/spending decreases that resulted in the Newt surpuls?

You can pick from the top six,

National Defense
Health
Medicare
Income Security
Social Security
Net Interest

Or do you suppose it was cuts to spending on bicycle paths?

How about those communist/socialist/democrat/liberal welfare spending programs of OASDI and Medicare? Is that where the Newt surplus came from?

Do tell? Come on, Mr. Econ 101. Do the math.

Where did this Newt surpuls come from?

of course anyone can look it up but what is your point exactly? What is your subject? Why do you care where Newts surplus came from??

 

[Two Thumbs]

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

Can it be both?

Some debt/def is fine

but we are WAY past fine

U.S. National Debt Clock : Real Time

$15.8 Trillion

I'd say that's at least $14 Trillion past reasonable

 

[Two Thumbs]

FDR borrowed his way out of the Depression
Reagan borrowed his way out of the Recession

Obama was blocked from doing what needed to be done to get out of a recession

fdr needed a war for his borrowing to work, cuz it wasn't working on it's own.

Reagan spent on the military. that actually created jobs from his demand for supplies.

Obama wasted, knowingly wasted the money he spent.

oh, and he wasn't blocked from spending, that's a low brow lie.

 

[EdwardBaiamonte]

FDR borrowed his way out of the Depression

actually FDR was dead when the depression and war ended so I have no idea why you think he borrowed his way out. Its lunacy.

 

[KissMy]

If the interest on the debt or deficit is lower than the the rate of economic growth / GDP growth or inflation rate then deficit spending helps the economy. If interest rates go above that then it is a drag on the economy.

 

[EdwardBaiamonte]

If the interest on the debt or deficit is lower than the the rate of economic growth / GDP growth or inflation rate then deficit spending helps the economy. If interest rates go above that then it is a drag on the economy.

how can liberal bureaucrats spending our hard earned money help the economy rather than merely create another bubble and depression!!

 

[KissMy]

If the interest on the debt or deficit is lower than the the rate of economic growth / GDP growth or inflation rate then deficit spending helps the economy. If interest rates go above that then it is a drag on the economy.

how can liberal bureaucrats spending our hard earned money help the economy rather than merely create another bubble and depression!!

The dollar is debt based. In theory if there was no borrowing then there would be no money. Right now loan demand is low & so is the interest rate. We could currently build the country for cheap. Once rates rise we need to pay off debt.

The housing bubble was caused by artificially holding down the interest rate & lowering credit standards while loan demand was through the roof. That caused major debt bubble inflation.

Credit standards should not be fluctuated. Low credit standards causes bubbles & inflation. They must be stable to have a stable currency. The dollar is only as good as the credit of the borrower.

 

[EdwardBaiamonte]

We could currently build the country for cheap.

you mean libturds could create a bubble for cheap?? Is the concept completely over your head??

The housing bubble was caused by artificially holding down the interest rate & lowering credit standards while loan demand was through the roof. That caused major debt bubble inflation.

it was a typical liberal monopolist bureaucrats best guess at how to build the country cheap. Is the concept really over your head??

Credit standards should not be fluctuated.

too stupid!!! when things are cheap more can afford stuff so standards go down because more can pay back at lower prices

Low credit standards causes bubbles & inflation.

too stupid!!! credit standards are fluid and something that only the free market can maintain on a minute by minute basis . A bureaucrat would only guess based on nothing at all!!

 

[Widdekind]

If the interest on the debt or deficit is lower than the the rate of economic growth / GDP growth or inflation rate then deficit spending helps the economy. If interest rates go above that then it is a drag on the economy.

that seems sensible -- the Government borrows on behalf of the Public. If private sector borrowing can be beneficial (when wisely spent), then so can Public sector borrowing. Mis-spending money on wasteful projects ("roads to nowhere") is problematic -- the Public should only borrow wisely, for sound (infrastructure?) investments, whose rate-of-return is high enough to pay for principle plus interest.

Richard Koo claims that, in the Japanese recession from the 1990s - 2000s, Government borrowing of ~500T Yen stimulated ~2000T Yen of GDP (~4:1).

 

[EdwardBaiamonte]

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

Can it be both?

we've rung up $16 trillion in deficits and we're in the greatest depression since the Great Depression; so there's your answer

 

[Againsheila]

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

Can it be both?

Play a game of Sim City, I'm pretty sure you'll figure it out right quick. In fact, I think everyone in government should have to play a successful game of Sim City before taking office.