Managing a contracting economy

[Robert Urbanek]

Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.

 

[Gdjjr]

The economy will manage the economy- if left alone. But, we know the rocket scientists in the District of Criminals can't abide that.

 

[OnePercenter]

Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.

Since 70% of the US economy is consumer spending, what would you guess would be the best way to stimulate the economy?

 

[OnePercenter]

The economy will manage the economy- if left alone. But, we know the rocket scientists in the District of Criminals can't abide that.

Isn't the "District of Criminals" a State now?

Since you live in "The Great State of Tex-ass" didn't leaving things alone afford you in paying the HOLLY SHIT property tax rate.

 

[Mac-7]

Since 70% of the US economy is consumer spending, what would you guess would be the best way to stimulate the economy?

Make things in America again

 

[Gdjjr]

Since you live in "The Great State of Tex-ass" didn't leaving things alone afford you in paying the HOLLY SHIT property tax rate.

I live in Texas- we don't have a personal income tax- thanks for the concern. Politicians are politicians and there are Districts of Criminals all over the Country-

 

[Gdjjr]

Make things in America again

That ain't gonna happen on the scale it would take to recover a segment of wealth generation that is gone-

 

[Gdjjr]

Since 70% of the US economy is consumer spending, what would you guess would be the best way to stimulate the economy?

The economy, if left alone, would stimulate itself- that's what economies do- controlled mechanisms always fail-

 

[Mac-7]

That ain't gonna happen on the scale it would take to recover a segment of wealth generation that is gone-

There is no magic bullet that will work over night

but disengagement from china and a reawakening of manufacturing in America will do wonders for our economy over time

 

[OnePercenter]

Since 70% of the US economy is consumer spending, what would you guess would be the best way to stimulate the economy?

Make things in America again

Questionable. We outlawed child labor and sweat shops so Corporate America offshored for the 5% greater profit.

 

[OnePercenter]

Since you live in "The Great State of Tex-ass" didn't leaving things alone afford you in paying the HOLLY SHIT property tax rate.

I live in Texas- we don't have a personal income tax- thanks for the concern. Politicians are politicians and there are Districts of Criminals all over the Country-

Neither does Nevada. No business tax either. Our property taxes are 250% less than yours. What gives?

 

[Mac-7]

Questionable. We outlawed child labor and sweat shops so Corporate America offshored for the 5% greater profit.

Dont allow them to do that

btw, corporate America was forced to go offshore because the federal government allowed cheap chinese imports to flood the country

 

[Andylusion]

Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.

It all depends on how long the nonsense continues. If we keep having this ridiculous freak out over the non-event known as Covid-19, then nothing anyone does will fix this.

It won't matter what we do, the countries finances are doomed.

If we end all the crap... we just stop doing this nonsense.... Then the economy will recover, and very quickly.

But we have to end all the nonsense.

That is the good side, and the bad said, all wrapped together. The good side, is that capitalism is remarkable at how quickly and efficiently it recovers when given the chance.

In the 1920s, there was a massive recession, far worse than what happened in 2008. Much worse.

The government simply cut taxes, and cut spending. Note: Cut taxes AND cut spending.

Result: Roaring twenties. It recovered so fast, that the decade which started out with a worse recession than anything we saw in 2008, became known as the roaring twenties.

And we've seen this elsewhere in the world. Iceland, India, even China honestly, the moment they engaged in Capitalism, all of them recovered, and did so with amazing speed.

Now compare that to 2008 and 2009. What did Bush and Obama do? The exact opposite of what they did in the 1920. Tons of spending all over the place, and the result was a long term wrecked economy.

If that sounds familiar, that's what they did in the 1930s, and the result was the great depression.

The sad part here, is that people now look to the people who abuse them, to find their solutions in life. People supported FDR, even though FDR's policies harmed the public for a decade or more.

Just like people still support Obama, when Obama's policies harmed them.

So that's bad side. The good side is, we could recover this economy in matter of just months.

The bad side is, the public will oppose everything we need to do, in order to recover.

What do we need to do? End the lock down. End the bailouts. End the unemployment. End the government intervention. Cut spending.

The economy will recover in months, if not just weeks.

 

[Andylusion]

Questionable. We outlawed child labor and sweat shops so Corporate America offshored for the 5% greater profit.

Dont allow them to do that

btw, corporate America was forced to go offshore because the federal government allowed cheap chinese imports to flood the country

Bull crap.

You are just wrong. I've worked at companies that off shored.

They would have been forced to off shore, with or without imported Chinese goods.

And by the way, *ALL* of the companies I worked for... were selling products international, including China.

If you cut off trade coming from China, you'll end up cutting sales to China, and that will cause just as much damage.

No, you are just wrong. You don't know what you are talking about.

 

[OnePercenter]

Since 70% of the US economy is consumer spending, what would you guess would be the best way to stimulate the economy?

The economy, if left alone, would stimulate itself- that's what economies do- controlled mechanisms always fail-

You can't "Stay the Course, Thousand Points of Light" when the economy is this bad. Your smelly skidmark failed to address the "Hoax COVID-19."

 

[OnePercenter]

Questionable. We outlawed child labor and sweat shops so Corporate America offshored for the 5% greater profit.

Dont allow them to do that

btw, corporate America was forced to go offshore because the federal government allowed cheap chinese imports to flood the country

Bull crap.

You are just wrong. I've worked at companies that off shored.

They would have been forced to off shore, with or without imported Chinese goods.

And by the way, *ALL* of the companies I worked for... were selling products international, including China.

If you cut off trade coming from China, you'll end up cutting sales to China, and that will cause just as much damage.

No, you are just wrong. You don't know what you are talking about.

What companies?

 

[Mac-7]

They would have been forced to off shore, with or without imported Chinese goods.

why?

the ususl leftwing marxist attack on corporations used to be that they were insulated from free trade by tariffs that enabled them to take advantage of American workers

but free trade did not hurt corps or the invester class at all

it hurt American workers who are forced to compete with chinese peasants

 

[Mac-7]

If you cut off trade coming from China, you'll end up cutting sales to China, and that will cause just as much damage.

Cutting sales to china he says

we buy $500 million more from china than we sell to them

 

[Votto]

Both neoliberals and conservatives are hopeful that future prosperity can be taxed to make up for the huge deficits being generated to bail out the COVID economy. But what if the economy limps along for the foreseeable future?

Does anyone have plans for a permanently contracting economy? Some options: Reductions in salaries and/or hours worked and executive compensation to keep more people employed instead of laid off. Repurposing vacant properties: Converting, for example, office or retail space into residential use or indoor agriculture.

Given that employees may have to move often to get new jobs as old ones dry up, traditional pension plans, already shrinking, could be replaced, perhaps by an enhanced Social Security system that includes larger copayments by government.

High job mobility may also call into question the value of a home as an investment as frequent relocation costs would eat into equity. Medicare-for-all would also seem to be a more efficient than a system in which one constantly changes health plans, often with gaps, as one constantly changes jobs.

Economic contraction will likely deflate high housing prices but the opportunity for young families to exploit that is sometimes countered by deliberate attempts to keep vacant properties off the market. Perhaps a tax on vacant housing would discourage that.

Ultimately, the only way to pay off some government deficits may be through high estate taxes on the accumulated wealth of the rich.

There may be a self-correcting mechanism. As the unemployed put off becoming parents, the contracting population will create labor shortages, which will raise wages. A similar trend, fueled by high parenthood costs, may have already been in place before the pandemic hit.

Look everyone, FDR's plan is coming to fruition.

Well it's about damn time!

 

[Toddsterpatriot]

Since you live in "The Great State of Tex-ass" didn't leaving things alone afford you in paying the HOLLY SHIT property tax rate.

I live in Texas- we don't have a personal income tax- thanks for the concern. Politicians are politicians and there are Districts of Criminals all over the Country-

Neither does Nevada. No business tax either. Our property taxes are 250% less than yours. What gives?

Our property taxes are 250% less than yours.

The government pays you for your property? Nice!!