Economic Shitstorm coming, but not for 5 years

[Big Fitz]

Interesting piece in the NYT, which ordinarily I detest but this one is worth reading IMHO. I've seen plenty of doomsday prophecies where the US and world economies will tank in 2011 or 2012, or 2013. And maybe so, but this pov is a little less imminent. I do think we should not raise taxes at all until the economy has significantly stengthened and unemployment is back down to reasonable levels, say 7%. Instead of raising rates, we should be looking at the most egregious tax breaks and loopholes and correcting them, for both income and corporation taxes.

And I do think we should be cutting spending, but not as draconian as some have suggested. There was a report that came out a month or 2 back that talked about duplicate, obsolete, or ineffective programs that currently exist in the federal gov't. You know, like 10 different agencies all doing the same thing. Why the hell don't we go find and eliminate that stuff first? Maybe save as much as a couple hundred billion a year, maybe a trilllion and a half or 2 trill over 10 years.


"
The authors do not suggest that policy makers should hurry to raise taxes or cut spending right now. They acknowledge that the economic recovery is still fragile and propose that lawmakers wait to implement budget cuts currently under discussion until 2013 to 2015. Additional cuts would ideally go into effect in 2016.
What needs to be done now is to design a long-term plan to reduce fiscal deficits in the future. The authors contend that such a program would “reassure the markets, keep interest rates low and instill greater confidence and certainty about future tax and spending policies, thereby encouraging businesses to commit their resources to job-creating investment projects.”
"


http://www.nytimes.com/2011/05/29/business/economy/29gret.html?_r=1&pagewanted=all

Business doesn't "make jobs". They identify a "demand" and then "invest" to create a "supply".

And how is that 'supply' created? Fairy sprinkles? Those rich investors roll up their sleeves and go do the work themselves?

No. They HIRE people, thereby creating jobs.

Shocker!

 

[rdean]

Interesting piece in the NYT, which ordinarily I detest but this one is worth reading IMHO. I've seen plenty of doomsday prophecies where the US and world economies will tank in 2011 or 2012, or 2013. And maybe so, but this pov is a little less imminent. I do think we should not raise taxes at all until the economy has significantly stengthened and unemployment is back down to reasonable levels, say 7%. Instead of raising rates, we should be looking at the most egregious tax breaks and loopholes and correcting them, for both income and corporation taxes.

And I do think we should be cutting spending, but not as draconian as some have suggested. There was a report that came out a month or 2 back that talked about duplicate, obsolete, or ineffective programs that currently exist in the federal gov't. You know, like 10 different agencies all doing the same thing. Why the hell don't we go find and eliminate that stuff first? Maybe save as much as a couple hundred billion a year, maybe a trilllion and a half or 2 trill over 10 years.


"
The authors do not suggest that policy makers should hurry to raise taxes or cut spending right now. They acknowledge that the economic recovery is still fragile and propose that lawmakers wait to implement budget cuts currently under discussion until 2013 to 2015. Additional cuts would ideally go into effect in 2016.
What needs to be done now is to design a long-term plan to reduce fiscal deficits in the future. The authors contend that such a program would “reassure the markets, keep interest rates low and instill greater confidence and certainty about future tax and spending policies, thereby encouraging businesses to commit their resources to job-creating investment projects.”
"


http://www.nytimes.com/2011/05/29/business/economy/29gret.html?_r=1&pagewanted=all

Business doesn't "make jobs". They identify a "demand" and then "invest" to create a "supply".

And how is that 'supply' created? Fairy sprinkles? Those rich investors roll up their sleeves and go do the work themselves?

No. They HIRE people, thereby creating jobs.

Shocker!

Only if there is a demand. If only rich people have money, no one can buy anything, therefore, no demand meaning "no jobs".

 

[Big Fitz]

Business doesn't "make jobs". They identify a "demand" and then "invest" to create a "supply".

And how is that 'supply' created? Fairy sprinkles? Those rich investors roll up their sleeves and go do the work themselves?

No. They HIRE people, thereby creating jobs.

Shocker!

Only if there is a demand. If only rich people have money, no one can buy anything, therefore, no demand meaning "no jobs".

And if they misjudge the market, those become TEMPORARY job numbers, don't they? And why wouldn't the rich have money? Ohhh that's right. You stole it from them. Thank you for illustrating why Michael Moore is such a fucking moron, Hairnet.