If we look at the economic situation, we see a couple of things. First, we are in a recession,
that much is clear. Now if because of the credit crunch, business are cutting jobs
which means one of the three pillars of economic spending in the U.S has stopped
spending money. the second pillar is consumers and they stopped spending money
a while back. So what is the last leg, government. And what is the classical
way to jump start an economy via keynesian economics? Government spending.
If McCain actually does have a spending freeze in government, he would take us from a recession
to a full fledged depression. Now one of his standing talking points is cutting taxes. Cutting taxes
has never been shown to do anything. It is a fact that it takes two years for a tax cut to take effect,
thus we would be guaranteed to be in a depression for at least two years after he took office.
The only way out of this economic situation is for the government to spend us out.
Keynesian economics is the only way, the down side is is the deficit would dramatically increase
but ending the Iraq war would help begin to slow down the deficit. The only economic crises that
might take us out of the game is the scariest terms in the English language, Stagflation or
stag-inflation. Economically that would be the worst scenario possible.
a stagnant economy with high inflation or deflation would be ugly.
Think Germany during the twenties and hope to god it doesn’t come to this.
So a vote for McCain is really a vote for a depression because he is WRONG, WRONG AND
WRONG about the cure for what ails america.
K: actually I do how economics work. I spent years studying economics and any questions I have,
I ask my brother who was a grad student in economics at the university of Chicago.
Bike: your opinion is null and void"
K: don’t you wish it was this easy, but it isn’t.
so go ahead, explain how I am wrong. Feel free to to express your own vast
knowledge about economics.
d0rkyd00d:
I’m beginning to think economists don’t even know how the economy works, otherwise what would we be doing in this position in the first place?"
K: actually, its not an economic problem, it is a political problem. Clueless politicians who do really stupid things like
cut taxes and then increase spending and waste 10 billion a month in Iraq. The deficit is really the big problem.
As you know, if you borrow money you have to pay it back and the interest rate on trillions of dollars is billions of dollars
going overseas. You want to know what caused the credit crunch, that’s it, the Iraq war and the interest rate on billions of dollars.
We can’t afford the Iraq war anymore. it costing us too much money.
I think economists, in the main, understand how capitalism works. But many economists get their particular jobs based on how they think the economy should work. Prescriptive economics. Economics with a political point of view. Thinktanks don’t hire the best economists - they hire the best economists with a particular point of view.
Hello bike seat. I think you’ll find Pk forecast the current difficulties three or four years ago on the Jollyroger forum. PK: any news on the publishing front?
derleydoo
bike_seat: you have no idea how economics work your opinion is null and void"
K: I still haven’t heard from bike_seat, so I must assume he knows nothing about
economics. some people talk a big game…
D: Hello bike seat. I think you’ll find Pk forecast the current difficulties three or four years ago on the Jollyroger forum.
K: I had forgotten that. Thanks for reminding me.
PK: any news on the publishing front?
derleydoo
K: I e-mailed you about a month ago. nothing going on except the election around here.
My book was rejected by a publisher and so now
I am trying to find a literary agent. I sent part of the book to an agent in Palo Alto California
and I am waiting for a response. I hope to get something this week, but realistically more
likely to be in a week or two.
After three years of unrelenting bad news, I am expecting more of the same, but we will see.
Sorry, PK, went a bit off-topic. Perhaps bike seat will offer something constructive. You paint a pretty bleak picture! In the uk mister brown has adopted a spend spend spend policy. This, after he has borrowed borrowed borrowed. It doesn’t really effect me. I have recently acquired a stake in two or three banks. Just gotta sit back and watch the money roll in. I think that’s how it works. derleydoo
