You can't spend your way out of a recession?

Discussion in 'Economy' started by proletarian, Feb 7, 2010.

  1. ☭proletarian☭
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    We're all familiar with this Republican mantra, yet isn't that exactly what they insist we must do when they speak of the importance of boosting consumer spending and getting people to go out and buy things to get the economy going again?
     
  2. Modbert
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    Modbert Daydream Believer Supporting Member

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    That's what I recall reading about after 9/11. Bush told people to just basically go out and buy stuff. Go to Disneyland, etc.
     
  3. Liability
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    If the economy is in the tank, then spending fake borrowed money to create a much more massive debt (that will eventually lead to the valid demand that the interest on the debt and/or the principle gets paid) is indeed an idiotic way to get out of the recession. It is not the creation of any real "demand." And absent a real demand, it will not produce long-term businesses that create wealth or the jobs that go along with them. And without real jobs being created, the short-term demand will clearly not rescue the tanking economy.

    But the massively inflated credit debt WILL kill off any hope of real spending down the road. Why? Because that money will be tied up for the payment of the interest and the principle.

    Spending massively borrowed money to get us out of a recession is like fucking for virginity (to borrow a phrase from the 60's).

    What President Obama is doing doesn't make ANY damn sense at all and nobody is buying the bullshit he's peddling.
     
  4. ☭proletarian☭
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    If the money is 'fake' then it couldn't be borrowed and spent.

    Unless you mean to imply that we're borrowing counterfeit bills from China and circulating them in our economy?

    And you're talking about borrowing money, not spending it. We're talking about spending your way out of a recession, not borrowing your way out od debt.

    Unless you mean that you and the Reps don't know the difference, which would explain an awful lot.
     
  5. The Rabbi
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    This is a Democratic mantra, not a Republican mantra.
    It is based on a fallacy, exposed first by Henry Hazlett in Economics in One Lesson.
    Gov't cannot spend its own money because it has none. It must spend other people's. So one person benefits only at the expense of someone else, who of course is not seen.

    The Republican mantra is "targeted tax cuts" which aim to change the incentives people have to save and invest. These have been proven to work at least 3 times already. Why Team Obama is clueless about this is unknown.
     
  6. ☭proletarian☭
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    Every time I hear it, it's from the Reps.
    The government is the People, in a republic. The government spends its own money, which is to say the People spend their own money.

    The applies, of course, only to revenue generated for government use via taxes, tariffs, etc.

    They lobby only for tax cuts to the rich, rather than the middle class. They help noone but their own.
     
  7. Liability
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    As you know, but appear to be not honest enough to admit, our currency is "backed" only by a fucking whim and a promise. It is not even a very compelling promise, anymore. We don't even engage in the sordid business of bothering to PRINT most of the worthless fake shit we laughingly call currency anymore.

    They are now just electronic blips. Representations of fake representations.

    There's not a fucking ONE of you frauds on the uber-left who can even pretend that we have ANY ability to pay off the massive debt we are accumulating -- and that's not even the tip of the fucking iceberg. The unfunded mandates are so much more massive and the prospect of making good on those obligations is even more remote -- which is to say, fantasy.

    We are screwed and all you uber lefties can do is insist that we need to borrow more and 'spend" that which isn't even our -- much less real -- to "get us out of the recession." The second valley is just around the bend.

    And that sign post up ahead? DEATH Valley, it seems to say.

    The idiot in chief should be slamming on the brakes, going into a panic skid and trying to jerk us around in the opposite direction. Instead, that fubar is pressing down hard on the accelerator. What a moron.
     
  8. The Rabbi
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    Which reps have declared we have to continue spending to avoid bankruptcy? Last I checked that was Biden.
    The gov't does not spend its own money because the gov't has no money of its own. It gets it from either taxes or borrowing, which have to be repaid through taxes.
    The "tax cuts for the rich" meme is getting a little long in the tooth. JFK cut taxes in 1960 and created prosperity. Reagan did it in 1980 and created prosperity. Bush sort of did it and created prosperity.
    The poor don't pay taxes. So cutting their taxes doesn't mean much.
    In any case you missed the point about targeting the cuts to affect behavior.
     
  9. ☭proletarian☭
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    @ Liability

    Wow... your partisan stupidity blinds you completely, doesn't it?

    1) Again, we're talking about the mantra that 'you can't spend your way out of a recession'. Borrowing money is another issue. If you want to discuss 'borrowing your way out of debt', make a thread about it.

    2) As an adherent of the Austrian School, I have railed against ithe inflation of the monetary supply many times. Pay attention.

    3) 'Uber-left'? See #2.

    4) You do realize FUBAR is not a verb, right? If you don't know how to use a term, you're better of not using it at all.
     
  10. ☭proletarian☭
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    You want to use taxes to change people's behavior? Hike the Death tax and tax the shit out of money in the bank. It'll either get spent or moved offshore.

    Your rhetoric doesn't fit the actions your support.
     

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