My Economic Stimulus Experiment

Discussion in 'Economy' started by Big Black Dog, Jul 10, 2009.

  1. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    If I understand the Economic Stimulus Plan, we are supposed to regain economic stability by spending money, i.e., spend our way back to wealth. Well, to see if a plan like this would really work, I decided to go down to Wal-Mart and spend $100.00. I didn't have $100.00 - only $20.00 so I had to borrow $80.00 from the wife. The US had to borrow the majority of the money to make this Stimulus Plan work so I figured, what the heck, it will make my stimulus plan work. I gathered up my $100.00 and off to Wal-Mart I went.

    I shopped for nearly a hour and purchased stuff that I really didn't need - much in the same way our government spends money. When I was leaving Wal-Mart I had $3.89 left from the original $100.00 so I dropped it into that little charity barrel that you see in just about all the Wal-Marts. This was my "foreign aid" gesture.

    I came home totally broke. I had spent my entire $100.00.

    Well, it's been a month now and still I have not seen any increased wealth like I felt I was supposed to see. That's the promise our government made. If we spend this money, we will become economically stable again. So far, nothing. I'm still out the $100.00 and only have a hand full of crap to show for it.

    To add misery to this experiment, the wife is now demanding her $80.00 back and she wants interest. China is going to want interest on the money they lent to us too!

    I think my economic stimulus experiment failed. I think the Economic Stimulus Plan for the country is going to fail too, if it works out like my Wal-Mart experiment did. I made exactly "zero" in increased wealth by spending my $100.00.

    I came to realize that you cannot spend yourself back into wealth.

    Think our government representatives will ever recognize this principal?
     
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  2. Oddball
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    Oddball BANNED Supporting Member

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    They might understand it right now, but there are no votes to be bought in being fiscally responsible when you have the big endless checkbook.
     
  3. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    I enjoy the spirit of this post a lot.

    However I think someone will tear you apart becuase you made it too simplistic. Get your flame suit on :lol:
     
  4. Zoom-boing
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    Zoom-boing Gold Member

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    The stim package failed because it wasn't a stim package, it was a spending/payback/Dem-loving-program/spending/who-gives-a-shit-what-anyone-else-thinks/we're-in-charge-now-so-shove-it/spending bill. I read that only about 1/4 of that $787 bill was actually for 'stimulus' programs.

    Sooner or later we will recover; the stim package just postponed it and cost us fucking billions. But, they don't care. Now they're talking another stim package; er, rather they're saying they're NOT talking about another one, which means they are going to try for another one.

    Had they left the auto businesses alone, they could have gone into bankruptcy on their own, the American taxpayer would not be out even more billions and they would have restructured and come out stronger. Or not. And if they failed . . . that's what happens when you fail to run the company correctly and fail to build what people want. If they had failed something better would have emerged . . . or we'd be down a car company or two.

    If an individual household cannot spend its way of of debt, how can a country? If an individual household overspends, they cut back, they reduce, they spend less. The fact that this logic is ignored by Washington . . . mind boggling.
     
  5. Skull Pilot
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    Skull Pilot Platinum Member

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    You obviously didn't spend enough.

    Go borrow 1,000 dollars and try again.
     
  6. Baruch Menachem
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    Baruch Menachem '

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    Funny, but off the wall here.

    A better metaphor would be if you took the money your wife gave you turned it all into pennies, and your went and moved it around the house, and threw away five pennies every time you moved it from place to place.

    The basis for their idea is that money is not circulating fast enough, so you need to put more money in circulation to get more economic activity.

    The big Keynsian concept is MV=PQ. That is money times velocity is price of all items in the economy times the quantity of all items. For some reason no one knows, the velocity of money has sunk, therefore price and quantity have gone down. So what you do to fix the problem is increase the money supply to bring the price and quantity numbers up. Sorry if this sounds kind of straw mannish, but this is all I can remember of the argument from 30 years ago.
     
  7. strollingbones
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    strollingbones Diamond Member

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    he is in the economy section ...not the flame zone....noobs....i swear...

    o dog...i am in the air about the cash for clunkers program....you get cash for 2 to 4 more miles per gal? o please..

    as for the 100 at walmart....all you did was help the chinese economy...buying american seems to be a concept lost on people who want to or need to save the few dollars they save at walmart...if you examine walmart prices they are not always cheaper...i dont think our country can spend our way out of this....hell isnt that how we got here....spending?

    plus when you think about it...this is such a throw away society....we spend cash for the convience of items...i.e. two pie crusts 3 bucks in grocery....i can make them for under 50 cents....but the modern person would much rather work and pay more for items that use to be "homemade"...why? why do people live dumps but drive new cars? i just dont get how americans think they can live this lifestyle and not pay for the high cost of excess
     
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  8. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    I may be a noob to the forum but look....your in the economy section and just flamed me....so its not too far fetched of a claim on my part ;).

    :lol:
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    Really lame strawman.

    There are still lots of things in Wally World that are made in America.
     
  10. strollingbones
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    strollingbones Diamond Member

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    o i didnt not flame you....stop being such a girl....
     

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