01 May 09
1 edit
Originally posted by TastyGlamGirlHow can "Keynesian economics" lead to the great depression if contractionary policies during the recession were conducted? Are you seriously that deluded?
Overpriced stock and housing are due to STUPID monetary policies during Clinton and Bush and due to Freddie Mac and Fannie Mae. Those two were the biggest buyers of subprime and guess what, they were government creations. The government created the demand for those exotic loans. Just like they created the moral hazard by co-signing loans so banks prett the American history were treated like that until 1929 and you didn't have depressions.
Fiscal policy is not about taxation, but about taxation AND expenditure. You accuse Obama of excessive spending, blink, and then accuse Obama of contractionary fiscal policies. This is hilarious.
The deficit is also a legacy because it's not easily adjustable. Certainly not in 100 days, with the added problem of being in the middle of a recession (which means revenues fall).
And high unemployment is something temporary.
LOL! Are you still stuck in a AS/AD framework? There is no "natural rate of unemployment" and the NAIRU is a fiction long ago discarded by serious economists. Sure, it's useful to teach some basic dynamics to undergrads, but it's as much an expositional tool as is perfect competition. In fact, there is still a debate whether there is hysteresis in unemployment, but most agree that there is none in inflation.
01 May 09
Originally posted by LundosWell said.
Are you saying that Freddie Mac and Fannie Mae were government creations? Or that the subprime lending was? Fannie Mae was a private organisation created in 1938, which was split into a private corp still named Fannie Mae and Ginnie Mae, the government sidekick. From wiki: To provide competition for the newly private Fannie Mae and to further increase the ava ...[text shortened]... exactly is that leading to the Depression in 1929? You really should read some history.
01 May 09
Originally posted by PalynkaThread 12177
Overpriced stock and overpriced housing were due to deregulation.
The budget deficit is also the moron's legacy, not Obama's. Implicitly suggesting a contractionary fiscal policy in the middle of a depression also shows your ignorance. Inflation may hurt the poor and middle class more than the rich, but if the alternative is high unemployment then do you ...[text shortened]... and continued in his term. That is a fact, despite Clinton and Bush not being libertarians.
Democrats in power, economy in the toilet
http://en.wikipedia.org/wiki/Harry_Reid
24th United States Senate Majority Leader
Assumed office
January 4, 2007
http://en.wikipedia.org/wiki/Nancy_pelosi
60th Speaker of the United States House of Representatives
Assumed office
January 4, 2007
http://en.wikipedia.org/wiki/File:Finance-dowjones-chart1.jpg
Dow Jones Industrial Average Jan 2006- Nov 2008
01 May 09
Originally posted by zeeblebothttp://www.presidentialdata.org/presidential_comparisons.htm
Thread 12177
Democrats in power, economy in the toilet
http://en.wikipedia.org/wiki/Harry_Reid
24th United States Senate Majority Leader
Assumed office
January 4, 2007
http://en.wikipedia.org/wiki/Nancy_pelosi
60th Speaker of the United States House of Representatives
Assumed office
January 4, 2007
http://en.wik ...[text shortened]... ia.org/wiki/File:Finance-dowjones-chart1.jpg
Dow Jones Industrial Average Jan 2006- Nov 2008
Next!
05 May 09
Originally posted by PalynkaObama has stated that capitalism is the greatest source of wealth-creation. Are you saying that he is more socialist than Capitalist, is that your disagreement? In that case you would be wrong.
What part of share its benefits more equitably did you fail to understand?
05 May 09
Originally posted by ScriabinWe could keep a capitalist models with some government assistance in preventative care, emergency care, and care for the very young and for the severely disabled. As for age, any benefit should be consdered for reassessment based on improvements in life expectancies... the 1930's were a different times in history, after all.
before you answer that question categorically, I'd like to hear what folks think the proper method for dealing with the cost of caring for the aged may be.
do we set a dollar amount as a cutoff? an age limit? or do we put the burden on the Doctors or insurance companies or gov't officials to decide whether it is worthwhile to continue treatment or elect ...[text shortened]... compared with the number of people paying into the system now.
anyone an insurance expert?
05 May 09
Originally posted by PalynkaA couple of economics concepts to be added to the discussion of Obama's economic policies.
How can "Keynesian economics" lead to the great depression if contractionary policies during the recession were conducted? Are you seriously that deluded?
Fiscal policy is not about taxation, but about taxation AND expenditure. You accuse Obama of excessive spending, blink, and then accuse Obama of contractionary fiscal policies. This is hilarious.
Th ...[text shortened]... ther there is hysteresis in unemployment, but most agree that there is none in inflation.
You must admit some obvious sacrifices of the long-term by Obama over the long term. First, he raised taxes, which is not a good long-term growth policy in general, but helps plug up deficits from all the spending going on. Furthermore, he is deficit spending now, he is not balancing the budge. that borrows from tomorrow to pay for spending today. that is a short-run benefit with long-run costs.
More complex is that he is not fixing the banks quickly and clearing the toxic assets completely. This could be a very long recovery because of his lack of political will to push anything more significant for long-run benefits... likely due to the political costs involved.
05 May 09
1 edit
Originally posted by TastyGlamGirlHow does capital gains taxation hurt the middle class the most when a very small fraction of their income is from capital? Until you start moving into the top 10% of the income distribution in the US, most people's wealth is almost entirely in their house (with some also in IRA's).
The White House is still occupied by a moron.
Raising capital gains hurts both the economy and tax revenue and hurts the middle class the most... Taxing 250 000$ or more companies hurts the people who create 74% of the new American jobs. But who cares, we need "change". Aww.
Actually inflation destroys the poor and middle class. And this guy wil ones on the market.
You really think Bush was a free market person? Because he wasn't.
Surely, you are not saying that people with incomes in excess of $250,000 are "middle-class."
I do agree that inflation hurts the poor and middle class more (again because of the composition of their portfolios -- primarily cash and/or low interest bearing accounts).
China not borrowing from the US is unlikely at least in the near future. Lending to the US is beneficial to their monetary policy because they are using it to keep the value of the yuan lower.
The idea that the US is going to default on its debt obligations is ridiculous.
The remainder of your post indicates to me that you may be some sort of Austrian econ nut. If that is the case, then I retract my opening question and give you up as a lost cause.