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Austerity is a gigantic mistake - it doesn't work.


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The more we try to decrease public spending, the more we stifle employment.

 

Here's a piece from another economist talking about Germany's plan.

 

...Austerity advocates object that more deficit spending now will burden our grandchildren with crushing debt. That might be true if the proposal were to build bigger houses and stage more lavish parties with borrowed money — as Americans, in fact, were doing in the first half of the last decade. But the objection makes no sense when applied to long-overdue infrastructure repairs. A failure to undertake that spending will gratuitously burden our grandchildren.

 

In 2009, austerity proponents argued against stimulus, predicting that the economy would recover quickly and spontaneously. It didn’t. Later, they said we tried stimulus and it didn’t work. But in the face of a projected $2 trillion shortfall in the spending needed for full employment, Congress enacted a stimulus bill totaling only $787 billion, spread over three years. And much of that injection was offset by cuts in state and local government spending.

 

Now austerity backers urge — preposterously — that infrastructure repairs be postponed until government budgets are in balance. But would they also tell an indebted family to postpone fixing a leaky roof until it paid off all its debts? Not only would the repair grow more costly with the delay, but the water damage would mount in the interim. Families should pay off debts, yes, but not in ways that actually increase their indebtedness in the longer term. The logic is the same for infrastructure.

 

Austerity advocates, who have been wrong at virtually every turn, are unlikely to change their minds about stimulus policy. But with continued slow growth in the outlook, it’s time to reframe the debate. Our best available option, by far, is to rebuild our tattered infrastructure at fire-sale prices. If the austerity crowd disagrees, it should explain why in plain English.

 

From http://www.nytimes.com/2013/07/07/business/austerity-wont-work-if-the-roof-is-leaking.html?_r=0

 

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FACT the lower taxes are the more the economy grows and tax revenues increase, jobs are created.

 

Govt spending does NOTHING but artificially create unnecessary jobs and work. Cut way back on the spending, lower taxes and let the economy work the way it works best with no govt interference.

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FACT the lower taxes are the more the economy grows and tax revenues increase, jobs are created.

 

Govt spending does NOTHING but artificially create unnecessary jobs and work. Cut way back on the spending, lower taxes and let the economy work the way it works best with no govt interference.

Didn't read the article, eh?

 

That's ok.

 

There were some big words.

 

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FACT the lower taxes are the more the economy grows and tax revenues increase, jobs are created.

 

Govt spending does NOTHING but artificially create unnecessary jobs and work. Cut way back on the spending, lower taxes and let the economy work the way it works best with no govt interference.

Really? When has that bs ever worked? Kennedy, Reagan, and Bush all included outragious spending programs with their tax cuts.

 

Our economy grew the most when tax rates were the highest 1940's-1960's.

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Really? When has that bs ever worked? Kennedy, Reagan, and Bush all included outragious spending programs with their tax cuts.

 

Our economy grew the most when tax rates were the highest 1940's-1960's.

Wow. And WW2 had NOTHING to do with that, right? :rolleyes:

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The Euro Zone put their populations on an auterity diet. Seems to work o.k. for them. No strikes or riots in Greece, Portugal, Spain, Italy, or France. Everbody is happy because their getting trickled down on by "job creators" everbody is living within their means.

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The Euro Zone put their populations on an auterity diet. Seems to work o.k. for them. No strikes or riots in Greece, Portugal, Spain, Italy, or France. Everbody is happy because their getting trickled down on by "job creators" everbody is living within their means.

Nobody likes a smartass. :D

 

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The more we try to decrease public spending, the more we stifle employment.

 

Here's a piece from another economist talking about Germany's plan.

 

...Austerity advocates object that more deficit spending now will burden our grandchildren with crushing debt. That might be true if the proposal were to build bigger houses and stage more lavish parties with borrowed money — as Americans, in fact, were doing in the first half of the last decade. But the objection makes no sense when applied to long-overdue infrastructure repairs. A failure to undertake that spending will gratuitously burden our grandchildren.

In 2009, austerity proponents argued against stimulus, predicting that the economy would recover quickly and spontaneously. It didn’t. Later, they said we tried stimulus and it didn’t work. But in the face of a projected $2 trillion shortfall in the spending needed for full employment, Congress enacted a stimulus bill totaling only $787 billion, spread over three years. And much of that injection was offset by cuts in state and local government spending.

Now austerity backers urge — preposterously — that infrastructure repairs be postponed until government budgets are in balance. But would they also tell an indebted family to postpone fixing a leaky roof until it paid off all its debts? Not only would the repair grow more costly with the delay, but the water damage would mount in the interim. Families should pay off debts, yes, but not in ways that actually increase their indebtedness in the longer term. The logic is the same for infrastructure.

Austerity advocates, who have been wrong at virtually every turn, are unlikely to change their minds about stimulus policy. But with continued slow growth in the outlook, it’s time to reframe the debate. Our best available option, by far, is to rebuild our tattered infrastructure at fire-sale prices. If the austerity crowd disagrees, it should explain why in plain English.

 

From http://www.nytimes.com/2013/07/07/business/austerity-wont-work-if-the-roof-is-leaking.html?_r=0

 

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Yep, and guess whos constituents are going to be showing up at townhalls?

 

http://news.yahoo.com/lockheed-martin-slashes-4-000-jobs-us-budget-143400235.html

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FACT the lower taxes are the more the economy grows and tax revenues increase, jobs are created.

 

 

 

This is fantasy.

 

Do you ever employ any logic to your thinking process? How about historical perspective? Hindsight?

 

If so, point to an instance where this theory has worked.

 

 

 

Come back when you have something intelligent to contribute.

 

 

If only.

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The more we try to decrease public spending, the more we stifle employment.

 

Here's a piece from another economist talking about Germany's plan.

 

Hey moonbat, Germany has one of the healthiest economies in all of Europe, so obviously it did work.

 

 

Who cares what the leftist/Socialist NYTimes thinks?

 

All they do is bungle Economics and related policy.

 

Say, didn't they endorse Obama's policies? How did that work out? :D

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Yep, and guess whos constituents are going to be showing up at townhalls?

 

http://news.yahoo.com/lockheed-martin-slashes-4-000-jobs-us-budget-143400235.html

 

Come on, everybody knows that Lockheed Martin is laying off 4000 employees because they're afraid Obama is going to raise corporate taxes again.

 

There's never any other reason.

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The more we try to decrease public spending, the more we stifle employment.

 

Here's a piece from another economist talking about Germany's plan.

 

...Austerity advocates object that more deficit spending now will burden our grandchildren with crushing debt. That might be true if the proposal were to build bigger houses and stage more lavish parties with borrowed money — as Americans, in fact, were doing in the first half of the last decade. But the objection makes no sense when applied to long-overdue infrastructure repairs. A failure to undertake that spending will gratuitously burden our grandchildren.

In 2009, austerity proponents argued against stimulus, predicting that the economy would recover quickly and spontaneously. It didn’t. Later, they said we tried stimulus and it didn’t work. But in the face of a projected $2 trillion shortfall in the spending needed for full employment, Congress enacted a stimulus bill totaling only $787 billion, spread over three years. And much of that injection was offset by cuts in state and local government spending.

Now austerity backers urge — preposterously — that infrastructure repairs be postponed until government budgets are in balance. But would they also tell an indebted family to postpone fixing a leaky roof until it paid off all its debts? Not only would the repair grow more costly with the delay, but the water damage would mount in the interim. Families should pay off debts, yes, but not in ways that actually increase their indebtedness in the longer term. The logic is the same for infrastructure.

Austerity advocates, who have been wrong at virtually every turn, are unlikely to change their minds about stimulus policy. But with continued slow growth in the outlook, it’s time to reframe the debate. Our best available option, by far, is to rebuild our tattered infrastructure at fire-sale prices. If the austerity crowd disagrees, it should explain why in plain English.

 

From http://www.nytimes.com/2013/07/07/business/austerity-wont-work-if-the-roof-is-leaking.html?_r=0

 

cc

Funny you should bring this up, I was listening to Progressive Radio and they were talking to their usual Prog guest and he was expressing his concerns over this. The one thing he said that stood out the most were his fears that the longer they let austerity continue more people would start to realize it hasn't had an effect on them at all and they hadn't noticed a thing so they wouldn't view austerity as a bad thing. The guest suggested the Progs keep up the pressure to end it and bring as many negative stories they can to everyone's attention, otherwise the majority of us wouldn't even think about it. How ya like them apples?

 

Yep, and guess whos constituents are going to be showing up at townhalls?

 

http://news.yahoo.com/lockheed-martin-slashes-4-000-jobs-us-budget-143400235.html

By "constituents" you mean "dependents" right?

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Wow. And WW2 had NOTHING to do with that, right? :rolleyes:

Exactly, Golfboy!!! Awesome point!!! Outragious government spending is what caused our economy to boom! You're finally right about something! Not one single tax cut in 20 years and we enjoyed world wide superiority in everything! We taxed and spent. That's what makes our economy go, not tax cuts, and austerity. That shrinks our economy.

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Hey moonbat, Germany has one of the healthiest economies in all of Europe, so obviously it did work.

 

How many times do intelligent people have to tell you, little girl?

 

Germany didn't impose austerity upon themselves. They didn't need to. They managed to hang onto their healthy capitalist economy and generous social programs after the financial crisis because they tax in relation to their spending. Their citizens pay some of the highest taxes in Europe but rather than whine constantly about it, they appreciate the benefits it affords them.

 

You have to tax in relation to what you spend. Bush didn't get that so, here we are.

 

If you pretend again, that no one has told you this, you will have to sit in the naughty chair with the dunce cap on again.

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..Austerity advocates object that more deficit spending now will burden our grandchildren with crushing debt. That might be true if the proposal were to build bigger houses and stage more lavish parties with borrowed money — as Americans, in fact, were doing in the first half of the last decade. But the objection makes no sense when applied to long-overdue infrastructure repairs. A failure to undertake that spending will gratuitously burden our grandchildren.

 

Unfortunately, the USA has borrowed money for consumption instead of making investments that could pay dividends. That money is spent and now owed. The only way back will include pain. The only question is, will be try and delay the inevitable and make it worse or try to deflate the bubble in a controlled manner?

 

I'm betting we try and delay.

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FACT the lower taxes are the more the economy grows and tax revenues increase, jobs are created.

 

Govt spending does NOTHING but artificially create unnecessary jobs and work. Cut way back on the spending, lower taxes and let the economy work the way it works best with no govt interference.

 

Really? When has that bs ever worked?

 

Only every time it's been done, moonbat. It's Economics 101.

 

Great job at remaining both ignorant and reality-free. :D

 

Kennedy, Reagan, and Bush all included outragious spending programs with their tax cuts.

 

But funny how much higher spending doesn't work for Obama. :D

 

Why is that? If spending works, we should be in a massive economic boom.

 

Spending by Beltway politicians doesn't create growth, except temporarily, minimally and at massive cost to taxpayers.

 

Our economy grew the most when tax rates were the highest 1940's-1960's.

 

Bulls***.

 

First, there was a huge post-WWII tax cut. Later, high rates stifled economic growth, and there were seven recessions over a short period of time.

 

That's why Supply Sider JFK proposed his Supply Side rate cut, almost identical to Reagan's.

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Only every time it's been done, moonbat. It's Economics 101.

 

Great job at remaining both ignorant and reality-free. :D

 

 

But funny how much higher spending doesn't work for Obama. :D

 

Why is that? If spending works, we should be in a massive economic boom.

 

Spending by Beltway politicians doesn't create growth, except temporarily, minimally and at massive cost to taxpayers.

 

 

Bulls***.

 

First, there was a huge post-WWII tax cut. Later, high rates stifled economic growth, and there were seven recessions over a short period of time.

 

That's why Supply Sider JFK proposed his Supply Side rate cut, almost identical to Reagan's.

Because he hasn't increased spending by much, Clem. You've seen the graphs, haven't you? As for spending relating to new law, Obama is somewhere around dead last out the last 4 presidents on new spending (as a percentage of GDP).

 

wjs-chart-presidential-spending-shifts-d

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Come on, everybody knows that Lockheed Martin is laying off 4000 employees because they're afraid Obama is going to raise corporate taxes again.

aith.

 

There's never any other reason.

Yes. The Bidness community is terrified of uncertainty.

 

That's why the goopers shut down the government and threatened to push us into default.

 

The only certainty here is that the goopers aren't acting in good faith.

 

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funny how much higher spending doesn't work for Obama. :D

 

Because he hasn't increased spending by much, Clem. You've seen the graphs, haven't you? As for spending relating to new law, Obama is somewhere around dead last out the last 4 presidents on new spending (as a percentage of GDP).

 

How to lie with statistics.

 

Everyone with eyes saw the massive spending hike to 25% of GDP as soon as Obama took office, moonbat.

 

And spending slowed only because Repubs took the House.

 

Is there any blatant lie trolls won't tell? :glare:

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Almost 5 trillion is from old law and you know it.

 

That's a fair assessment. SS, Medicare and Medicaid are the drivers of our debt and it's going to get much, much worse.

 

I wish we had leadership that would tackle that problem...besides the few TEA party who don't have the numbers to effect change.

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