Grim Jobs Report: Welcome to the Recession

Discussion in 'Economy' started by onedomino, Feb 1, 2008.

  1. onedomino
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    onedomino SCE to AUX

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    I wonder what economic conditions we would have now, if Bush and Congress not blown $3 trillion in money we did not have over the past seven years? We should have been forced to actually pay for the Iraq War, which has been my position from the first ridiculous Bush deficit budget. Those times in these pages that I mentioned we either had to reduce spending or increase taxes to pay for the Iraq War, my position was derided. Even a cursory reading of US contemporary economic history reveals that our worst post WW2 economic slump was caused by Johnson's and Nixon's failure to pay for the Viet Nam War, combined with an oil price shock (exactly the conditions that pertain now). Instead the Viet Nam War was billed to my generation and the result was "stagflation" at first, and then raging inflation under Carter, which obviously was not his fault even though he took the rap (Carter was an amazingly bad President, and he could have tried spending cuts to curb inflation, but the principle cause of his Presidential term's near 20 percent inflation came from Johnson and Nixon). Not only do we forget history, we cannot even remember just a few years ago.

     
  2. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    Yeah, it seems like everything I read, it sounds more and more like a replay of the 1970's. For the elections in 2010 and 2012, I'm going to hazard a guess and say that the word "stagflation" will be making a big comeback.

    And economically speaking, we'd be a lot better off if it hadn't been for the war. Wars don't produce prosperity, that is a total myth. Think about it: you're basically taking giant stacks of money, and blowing them up. What would that money have bought if it had stayed in the private sector? New factories? Increased R&D so that american industries can stay competitive? The trouble is, you can't make an explicit list of what would have been funded, so people therefore assume that we'd be the same as we are today. Sometimes wars are necessary, but let's not fool ourselves into thinking that it's good for the economy, or that we aren't paying for it even though taxes stayed low. We shifted the burden into the hidden/delayed tax of inflation, that's all.
     
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  3. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    whoops double post
     

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