Expiring unemployment: The next big hit to the economy?

Discussion in 'Economy' started by Flaylo, Jul 11, 2011.

  1. Flaylo
    Offline

    Flaylo Handsome Devil

    Joined:
    Feb 10, 2010
    Messages:
    5,664
    Thanks Received:
    448
    Trophy Points:
    83
    Location:
    In some grass near you
    Ratings:
    +451
    The next big hit to the economy? | The Lookout - Yahoo! News




    Repugs? I was right, the housing bubble, not government overspending has hurt the economy more than anything. For those rightwingers who say our social welfare system is too generous they need to come to Europe our systems look draconian compared to theirs. More importantly, taking away social welfare help will take money out of the economy and all those markets and businesses that depended on such money will go to crap and shat will just get worst. Repug solutions, lol, the recipe to disaster.
     
  2. shintao
    Offline

    shintao Take Down ~ Tap Out

    Joined:
    Aug 27, 2010
    Messages:
    7,231
    Thanks Received:
    320
    Trophy Points:
    83
    Ratings:
    +339
    And the rightwing loons keep saying that government can't create or maintain jobs. Fools!
     
  3. Flaylo
    Offline

    Flaylo Handsome Devil

    Joined:
    Feb 10, 2010
    Messages:
    5,664
    Thanks Received:
    448
    Trophy Points:
    83
    Location:
    In some grass near you
    Ratings:
    +451
    They're dumb people, those small businesses and local business in areas where the poor are at will take a huge hit if social welfare is cut, yet the GOP claims that their plan aims to help small businesses, well poor people take that money they are given to buy food and ggods they need to survive and they spend it at those small local businesses, so actually social welfare puts more money back into the system than those rich morons who get tax cuts and hoard the money and or put it in overseas accounts and pay workers overseas.
     
  4. Flaylo
    Offline

    Flaylo Handsome Devil

    Joined:
    Feb 10, 2010
    Messages:
    5,664
    Thanks Received:
    448
    Trophy Points:
    83
    Location:
    In some grass near you
    Ratings:
    +451
    The Repugs have no answers, they go silent when hit with facking facts.
     
  5. ShackledNation
    Offline

    ShackledNation Libertarian

    Joined:
    Jun 16, 2011
    Messages:
    1,885
    Thanks Received:
    208
    Trophy Points:
    130
    Location:
    California
    Ratings:
    +324
    You are right, the housing bubble did cause this mess. And the housing bubble was caused by the government. The Federal Reserve's inflationary monetary policy pumped a ton of dollars into the economy. This stimulated investment and spending. All of this money went into housing, but it was unsustainable. When you increase the supply of money, you lower its price. The price of money is defined as purchasing power. So when you create more money, you cause prices to rise. Due to huge incentives to buying a home (such as $5000 tax credits, sub-prime mortgages, flexible interest rates, massive encouragement by government politicians, Fannie Mae and Freddie Mac) the money was funneled into the housing market. Prices rose in this market, possible because of the creation of money. But soon it was apparent that consumers did not have the actual wealth to purchase all these homes. The market was not providing what people actually wanted. It collapsed, bringing down the economy that had so heavily invested in the inflationary market.

    The recession is necessary to reallocate the resources that were malinvested during the boom period. More government spending--that is draining resources from the productive sector and spending them on arbitrary projects--will not solve anything. We don't need a stimulus; we should not want to stimulate what should now be obvious to everyone as an unsustainable economy. We need restructuring, and that is what a recession brings.

    And hate to break it to you, but spending does not drive economic growth. Saving does. I suspect the reason nobody is replying to this post is because it is full of so many errors it would take ages to correct them all. Here is the short list of things you need to know:

    1. The creation of money is behind the boom-and-bust cycle, and caused the most reason housing bubble.
    2. Government encouraged investment into housing, and subsidized losses.
    3. Government spending drains resources from the productive sector and transfers them to arbitrary political projects.
    4. Savings, not spending, creates wealth. You cannot spend money on goods unless the goods have already been created.
    5. Recessions are necessary to correct the misallocation of resources and malinvestments that occurred during a bubble economy.
    6. I don't know what studies you are talking about, but unemployment benefits function to keep people dependent on government rather than finding jobs. You quoted a yahoo news BLOG that did not cite its own sources.
    7. Reducing jobless benefits does not take money out of circulation if the money is not taxed away in the first place.
    8. The production structure of the economy is not 1 dimensional. It is made up of capital intensive goods (like research, technology development) and consumer-intensive goods (the final product). It is capital goods that create growth and grow the economy. These goods are financed by savings.
     
    Last edited: Jul 11, 2011
  6. Avorysuds
    Offline

    Avorysuds Gold Member

    Joined:
    Jul 4, 2010
    Messages:
    13,834
    Thanks Received:
    1,655
    Trophy Points:
    245
    Location:
    Eugene Oregon
    Ratings:
    +2,141
    Sooo, trillions spent, welfare taking over, foodstamps at record highs and Government all up in Healthcares shit and we are in the worst recession since the Great Depression... What else do you guys need before the country can at least stop getting worse? Oh and more war than we had under Bush...

    You seem to push this idea that "Liberals" have not gotten their way, even if it was not 100% their way it was about 80%... 80% and things are getting worse, well, things are getting worse quicker now...

    Oh and for the record, Progressive liberals are no different than the Neocons under Bush, litearlly no different.
     
    Last edited: Jul 11, 2011
  7. Zander
    Offline

    Zander Platinum Member

    Joined:
    Sep 10, 2009
    Messages:
    17,452
    Thanks Received:
    6,575
    Trophy Points:
    390
    Location:
    Los Angeles CA
    Ratings:
    +12,894
    Following Flaylo's twisted logic, unemployment is........ good!! Just think of the stimulative power of millions more unemployed people!! Woo Hoo!!!
     
    • Thank You! Thank You! x 1
  8. California Girl
    Offline

    California Girl BANNED

    Joined:
    Oct 8, 2009
    Messages:
    50,337
    Thanks Received:
    8,960
    Trophy Points:
    0
    Ratings:
    +8,965
    Fail&Won'tGo now claims he writes for yahoo? Interesting.
     
    • Thank You! Thank You! x 1
  9. California Girl
    Offline

    California Girl BANNED

    Joined:
    Oct 8, 2009
    Messages:
    50,337
    Thanks Received:
    8,960
    Trophy Points:
    0
    Ratings:
    +8,965
    He's not right. In fact, he's wrong. Again.

    There was not one bubble that burst and collapsed our economy. There were a whole bunch.... bubble that non-partisan economists had been warning about for years.... and it was that evil Republican, George W Bush, that tried to lessen the impact of a housing collapse.... and it was the nice Democrats who call him a fear monger, liar, and mocked his attempts to drag the likes of Freddie and Fanny into line.

    They laughed. And Americans cried.
     
  10. Flaylo
    Offline

    Flaylo Handsome Devil

    Joined:
    Feb 10, 2010
    Messages:
    5,664
    Thanks Received:
    448
    Trophy Points:
    83
    Location:
    In some grass near you
    Ratings:
    +451
    When rightwingers can't answer with facts they respond with ad-hominems and twist your arguments.


    § Taking away social welfare takes money out of the economy and hurts small businesses because consumer spending contributes to the economy, when you lower that down its counterproductive because businesses, especially small businesses will fail and struggle and will cause loss of jobs. Unemployed people do spend their money on goods like food and clothing and they have to buy it from some where, that money they receive helps businesses. I don't advocate for unemployment to help small businesses, that's distorting my position, obviously people who have jobs will spend more and that should be the ideal, my position is that taking away social welfare assistance isn't going to help businesses. Unemployment will at least go back into the economy more likely.


    - The housing bubble has facked up the economy, not massive government overspending, stop the facking lies.
     

Share This Page