Why we want stimulus now and worry about deficits later

[ilia25]

How does the government spend more, which automatically increases the debt, decrease the debt.

By making the economy growing so fast that the permanent increase in the government revenues would quickly outpace the temporary rise in spending.

Sorry, you lack the comprehension to have this conversation.

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

 

[Skull Pilot]

By making the economy growing so fast that the permanent increase in the government revenues would quickly outpace the temporary rise in spending.

Sorry, you lack the comprehension to have this conversation.

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

 

[Lakhota]

Did you hear FDR prolonged the Great Depression? - U.S. Economy - Salon.com

 

[The Rabbi]

Sorry, you lack the comprehension to have this conversation.

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

With proof to the contrary.
It's like stuff goes down the memory hole. The administration says something and then next week it's like it never happened.

 

[ilia25]

The last stimulus was $1 trillion and it failed.

It did not fail, it stopped the economy from sliding deeper into recession.

Absolutel no proof of that.

There is even less proof that it didn't.

However when the stimulus was announced the gov't set unemployment goals that the stimulus would produce.

The government clearly underestimated the depth of the crisis and the size of an adequate stimulus. But it does not mean that the stimulus we had was useless.

 

[Skull Pilot]

Did you hear FDR prolonged the Great Depression? - U.S. Economy - Salon.com

OK I'll believe a reporter for Salon.com over a bunch of economics professors any day.

 

[Skull Pilot]

It did not fail, it stopped the economy from sliding deeper into recession.

Absolutel no proof of that.

There is even less proof that it didn't.

However when the stimulus was announced the gov't set unemployment goals that the stimulus would produce.

The government clearly underestimated the depth of the crisis and the size of an adequate stimulus. But it does not mean that the stimulus we had was useless.

Doesn't mean it worked either.

 

[Two Thumbs]

By making the economy growing so fast that the permanent increase in the government revenues would quickly outpace the temporary rise in spending.

Sorry, you lack the comprehension to have this conversation.

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

You mean like the stimulus worked?

pfft

please highlight the slogan I repeated.

 

[ilia25]

Sorry, you lack the comprehension to have this conversation.

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

 

[Two Thumbs]

Did you hear FDR prolonged the Great Depression? - U.S. Economy - Salon.com

From American progress too Salon

damn, no further proof is needed your honor. My client is indeed, nuttier than a fruit bar.

 

[Skull Pilot]

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

You believe this recession was so much more severe than any other? The recession of 1981 was actually worse and it ended sooner and with much larger increases in GDP and much faster decreases in unemployment. So all that spending sure didn't do much to make this recession resolve faster did it?

http://www.larryelder.com/b/5-Myths-About-President-Obama-Economic-Recovery/-391626231338194133.html

"The country had to dig out of a historically deep hole. Obama often explains the length of the recovery by noting how deep the recession had been. But while the so-called Great Recession lasted 18 months and sent unemployment to 10.1%, the 1981-82 recession was comparable in length and severity. That one lasted 16 months, and pushed unemployment even higher, to 10.8%. The difference is that today unemployment is still at an historically high 8.6%, and it's only that low because the labor force has declined. Real GDP is a mere 0.04% above its pre-recession peak. At the comparable point in the Reagan recovery, unemployment had plunged to 7.3%, while the economy had grown 12% above its pre-recession peak, and was still climbing fast."]The country had to dig out of a historically deep hole. Obama often explains the length of the recovery by noting how deep the recession had been. But while the so-called Great Recession lasted 18 months and sent unemployment to 10.1%, the 1981-82 recession was comparable in length and severity. That one lasted 16 months, and pushed unemployment even higher, to 10.8%. The difference is that today unemployment is still at an historically high 8.6%, and it's only that low because the labor force has declined. Real GDP is a mere 0.04% above its pre-recession peak. At the comparable point in the Reagan recovery, unemployment had plunged to 7.3%, while the economy had grown 12% above its pre-recession peak, and was still climbing fast.[/URL]

This recession was caused by the government's artificially low interest rates and the wanton borrowing and spending and the huge bubbles in housing it caused.

If you look carefully you'll see the government is doing the same wanton borrowing that tanked the economy.

 

[Two Thumbs]

Why, I can clearly see that mindless repeating of slogans is all that you are capable of.

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

The spending crushed that value of the dollar by ramping up inflation.

thus that fail

 

[The Rabbi]

It did not fail, it stopped the economy from sliding deeper into recession.

Absolutel no proof of that.

There is even less proof that it didn't.

However when the stimulus was announced the gov't set unemployment goals that the stimulus would produce.

The government clearly underestimated the depth of the crisis and the size of an adequate stimulus. But it does not mean that the stimulus we had was useless.

That's true. It did wonders paying off Obama's union supporters. For the rest of us, not so much.

 

[ilia25]

Just like fdr prolonged the Great Depression.

wonder who knows why it got the title of The 'Great' Depression?

You are just making things up.

You don't know that there was a depression in the 20's. The government did nothing and it was over in a year.

You don't know what you are talking about. The recession in early 20's was caused by the government to bring the inflation down -- just as the recession of early 80s. Fed raised rates to slow down the economy and bring down the inflation. Once that was achieved, Fed lowered the rates and the economy springed back to the full employment.

That is nothing like happened in 1929 or 2008 when the recession was caused by over-investment and Fed lowering rates to 0 was nowhere near enough to avert a prolonged slump.

 

[ilia25]

Absolutel no proof of that.

There is even less proof that it didn't.

However when the stimulus was announced the gov't set unemployment goals that the stimulus would produce.

The government clearly underestimated the depth of the crisis and the size of an adequate stimulus. But it does not mean that the stimulus we had was useless.

That's true. It did wonders paying off Obama's union supporters. For the rest of us, not so much.

You have absolutely no proof of that.

 

[ilia25]

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

The spending crushed that value of the dollar by ramping up inflation.

What inflation??? There is no inflation:

 

[Two Thumbs]

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

The spending crushed that value of the dollar by ramping up inflation.

What inflation??? There is no inflation:

so the fact that everything costs more is just my imagination.



anyone else think this is BDBoop?

 

[Cammmpbell]

The chart above shows a deeply depressed economy. The US still produce about 1 trillion less in annual GDP than they are capable of. Not only it results in a lot of human suffering, but it also starves the government of tax revenues, creating huge budget deficits.

Therefore we need more stimulus to help the economy closing the gap (which basically means creating more jobs) -- because it will also reduce the deficits.

In George W. Bush's first cabinet meeting Dick Cheney said,"The Debt Doesn't Matter, Raegan Proved That!" Bush cut taxes twice and proceeded to double the total debt from $5.7 to nearly $12 trillion. Why are we all of a sudden cupposed to be worrying about it if it doesn't matter

 

[ilia25]

Says he who repeats Bam Bam's claims of saving us from another depression like it's the gospel.

I don't care who claims what. The recession was the result of private sector cutting its spending. The increased spending by the government made recession milder. It is not rocket science.

You believe this recession was so much more severe than any other? The recession of 1981 was actually worse and it ended sooner and with much larger increases in GDP and much faster decreases in unemployment. So all that spending sure didn't do much to make this recession resolve faster did it?

Larry Elder: 5 Myths About President Obama Economic Recovery

"The country had to dig out of a historically deep hole. Obama often explains the length of the recovery by noting how deep the recession had been. But while the so-called Great Recession lasted 18 months and sent unemployment to 10.1%, the 1981-82 recession was comparable in length and severity. That one lasted 16 months, and pushed unemployment even higher, to 10.8%. The difference is that today unemployment is still at an historically high 8.6%, and it's only that low because the labor force has declined. Real GDP is a mere 0.04% above its pre-recession peak. At the comparable point in the Reagan recovery, unemployment had plunged to 7.3%, while the economy had grown 12% above its pre-recession peak, and was still climbing fast."]The country had to dig out of a historically deep hole. Obama often explains the length of the recovery by noting how deep the recession had been. But while the so-called Great Recession lasted 18 months and sent unemployment to 10.1%, the 1981-82 recession was comparable in length and severity. That one lasted 16 months, and pushed unemployment even higher, to 10.8%. The difference is that today unemployment is still at an historically high 8.6%, and it's only that low because the labor force has declined. Real GDP is a mere 0.04% above its pre-recession peak. At the comparable point in the Reagan recovery, unemployment had plunged to 7.3%, while the economy had grown 12% above its pre-recession peak, and was still climbing fast.[/URL]

This recession was caused by the government's artificially low interest rates and the wanton borrowing and spending and the huge bubbles in housing it caused.

If you look carefully you'll see the government is doing the same wanton borrowing that tanked the economy.

Again, there are different kind of recessions. Some are deliberately caused by Fed to bring down inflation -- those (even severe ones) end right after Fed loosens the monetary policy. The recessions of early 20s or early 80s are the examples.

Other recessions are caused by a bubble bursting -- like dot-com, or the retail one. Fed can lower rates to fight it, but it only can can go as far as zero. And if zero rate is not enough, then economy gets in a prolonged slump -- unless the government rises spending enough.

 

[ilia25]

The spending crushed that value of the dollar by ramping up inflation.

What inflation??? There is no inflation:

so the fact that everything costs more is just my imagination.

No, it is not your imagination. You are just too dumb to understand the difference between "everything costs more" and "ramping up inflation". It's like the difference between mile and mile per hour.