Spend or Save?

Discussion in 'Economy' started by antagon, Jul 7, 2010.

  1. antagon
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    antagon The Man

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    The centerpiece of the recent economic summits is the debate between austerity and investment as the righteous path in our current economic climate. No doubt, this is a debate which has been played out here on the USMB well before the G8/G20. I side with the US and the world’s vibrant economies in support of the need to invest in the economic recovery and manage monetary policy in the defense of the national economy at this juncture. Europe’s stagnating dinosaur economies aim to protect their colonial gains with their alternative, decidedly conservative approach. Jobs, interest rates and a double-dip which may reverberate internationally hang in the balance.

    Who’s got the winning horse in the race?
     
  2. william the wie
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    william the wie Gold Member

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    Neither, China and Japan are in deep trouble. Europe is a demographic disaster zone and things will get worse there no matter what. The US will be forced into austerity due to a lack of domestic savings. lose-lose no matter what.
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    Gubmint: Austerity.
    Private enterprise: Investment.

    Any time that any one in gubmint says "investment", check your wallet into the nearest safe deposit box.
     
  4. editec
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    editec Mr. Forgot-it-All

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    If our societies were identical, then asking that question might make sense.

    But as they're different in multiple ways, each of which effects the economy, there might be different winning (or losing) approaches for each nation

    For instance...Germany's is trying an austerity approach, but their unemployment rate actually went down. Germany decreased average weekly hours so that people wouldn't be laid off.

    The USA cannot even attempt such a plan.

    So...how do you compare different nations and make sense of it?

    Economics isn't like the physical sciences.

    One formula of success or failure does not fit all

    Each national economy is unique. And over time even the same national economy changes, too -- as multiple conditions within that economy change, or multiple conditions outside of that economy, change.

    Hence, one approach might work under one conditionic cicumstance, and totally fail under another circumstance even within the same nation.

    Again, that's another reason economics is called the DISMAL science.
     
    Last edited: Jul 7, 2010
  5. Samson
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    Samson Póg Mo Thóin Supporting Member

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    "Europe’s stagnating dinosaur economies aim to protect their colonial gains with their alternative, decidedly conservative approach.....":eusa_eh:

    Huh? I think you're 70 years behind on this statement....what "colonial gains?"

    At any rate I guess the best thing to do under these economic circumstances is to write incomprehensible statements, and : "side with the US and the world’s vibrant economies in support of the need to invest in the economic recovery and manage monetary policy in the defense of the national economy at this juncture.":lol:
     
  6. antagon
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    antagon The Man

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    not everyone was broke in the wealth-depraved post-war european economic environment. burgeoning industrialists were ruined, but since that time, those holding colonial riches dominated the economy on that continent. that well has dried up and the value of savings hence outweighs that of industry and commerce in terms of european political influence. this is most notable in the UK, but such old, stale money influences many other european nations in ways not comparable to the US.

    i think you haven't scrutinized the last 70 years sufficiently.

    i'd simplify for those who find my statement incomprehensible: the US, China, Russia, Brazil - vibrant economies - suggest stimulus and monetary intervention. i concur.
     
  7. antagon
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    antagon The Man

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    i'd agree that there's conditions to economic policy, but i feel the idea of choking an economy in a recovery survives all these conditions, netting the same or similar effect in all economies from bangladesh to belgium.

    it is yet to be seen if this is hot air or if these economies will implement their threatened austerity measures. if they do, particularly to the degree which the UK intends, i think the result will be a vindication for those who feel the basis of conservative economic theory is from the ass end of a steer.
     
  8. antagon
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    antagon The Man

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    i see shit differently, man. i pay taxes. if the government declares that it is going to raise taxes and cut spending to balance its books amid impaired private investment, i'll be pissed. we already bought our tickets during the expansion and peak, so during the contraction and recovery, the government ought to put on the show.
     
  9. Samson
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    Samson Póg Mo Thóin Supporting Member

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    You do realize that the sun has set on the British Empire for quite some time?

    "the US, China, Russia, Brazil - vibrant economies - suggest stimulus and monetary intervention. i concur."

    This really is slightly less incomprehensible than the initial try:clap2:
     
  10. william the wie
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    william the wie Gold Member

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    Russia has tanked and China is tanking, Brazil is so opaque even Brazilians can't explain it intelligibly to each other.
     

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