The single most important phrase in economics is....

Discussion in 'Economy' started by Brutus, Jul 19, 2011.

  1. Brutus
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    Brutus Senior Member

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    "prime the pump" is perhaps the key phrase in all of economics. When you prime a water pump you get it started with a little water and then it runs on its own.

    But, when the liberal primes the economy with federal spending it merely creates a bubble not related to or attached to the broader economy and so is not able to pull the broader economy along.

    Worse, the bubble bursts causing a depression in the bubble area leaving it worse off than before, plus, the taxation necessary to finance the bubble further recesses the broader economy that was taxed to finance the bubble.

    Now we can understand the futility of Keynesian "prime the pump" economics and the futility of using Obama's stimulus bubble to fix the housing bubble.

    Ideally we want minimal taxation and Keynesian interference so the free market will organize the economy in the most efficient way possible.
     
  2. Truthmatters
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    Truthmatters BANNED

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    to bad the stimulus worked huh?
     
  3. Truthmatters
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  4. Brutus
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    Brutus Senior Member

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    yes BO said unemploymet would never hit 8%, it hit 9-12% and has stayed there!! THe worst economic performance since the liberal Great Depression and for the same exact reasons.
     
  5. ShackledNation
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    ShackledNation Libertarian

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    And how many jobs would have been created had the money to fund the stimulus not been taxed away from the private sector? The argument operates under the fallacy of the broken window. It should be obvious the stimulus has failed. The Stimulus might as well have paid 3 million workers to dig holes in the ground. All these jobs do is divert resources to sectors that the government has political ties with.
     
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    Last edited: Jul 19, 2011
  6. Brutus
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    Brutus Senior Member

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    And how on earth could a very temporary stimulus create permanent jobs????

    If I gave a company 100k to hire a guy they probably would, but what are the chances the guy would have his job when the 100k ran out. IF they could have profitably hired a guy for 100K they would have been happy to do it on their own, and on a permanent basis!! Liberalism merely panders to the pure ignorance of liberals to gain political power.
     
    Last edited: Jul 19, 2011
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says dey still ain't sent her dat second stimulus check either...
    :eusa_eh:
    More Than $125 Billion In Stimulus Funds Still Not Paid Out
    Thursday, August 04, 2011 – Billions of dollars in stimulus funds have not been paid out, according to a government Web site that tracks the $787 billion approved by Congress to fund the American Recovery and Reinvestment Act of 2009.
     
  8. editec
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    editec Mr. Forgot-it-All

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    Another alternative economic phase of late seems to be

    LET IT BLEED.

    Apparently many of you think that THAT is a better system.
     
  9. ShackledNation
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    ShackledNation Libertarian

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    In case you haven't noticed, the economy is worse off after the Stimulus. The phrase of such actions should be called "MAKE IT BLEED."
     
  10. iamwhatiseem
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    iamwhatiseem Gold Member

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    Well today - I would say the most important phrase is - "it is the spending stupid".
    The world held their breath for the past few weeks to see what the leading economy in the world's leaders were going to do.

    And they struck out and did absolutely nothing.
    This got people looking at foreign currencies...and then this opened the door to Pandora's box and everyone quickly saw that European currencies are CLEARLY not a place to hide...then bad economic indicators fell from everywhere...and people with money do what they do - they go to the safest place they know of...U.S. treasuries.
     

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