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Imperial Forum → Politics → Obama to spend even more
Not even Lord Keynes would have gone so far. Hitler is a poser compared to this populist. Never in history a president ever did spend so much of tax payers money for his or his backgrounds personal gain.
Incredible.
Actually, pretty sure Keynes would have gone this far.
Remember, in the long run, we're all dead!
LoLz at people objecting to government spending as a way to close the GDP gap. The government's options are fiscal and monetary policy. With fiscal policy, they can provide an injection in the economy by either lowering taxes or government spending. I personally prefer lowering taxes, but that means more debt or a cut in public services (which can lead to laying off public employees and have the opposite of the intended effect). People may also choose to just save their extra money, in which case it doesn't help any.
In our case, lowering taxes is not much of an option unless we dramatically cut military spending. And our monetary policy has frankly been ineffective, because banks are hesitant to lend domestically (but perfectly happy to invest overseas). The fact is that we are in a liquidity trap (The effects of the Federal Reserve are largely ineffective). Usually liquidity traps are caused by supply shocks, and although there was the Arab Spring, I am concerned a large part of it is overseas investment.
Out of Obama's traditional options, government spending is all he has available. However, it's time to rethink past legislation. We need to reverse the reforms that limited bank mergers and allowed them to offer other financial services, and outright ban them from investing and receiving deposits from foreign countries. That way banks will be forced to invest domestically and monetary/fiscal policy will be effective again. Without doing that, Obama's spending is just going to raise inflation.
you know what would probably do the US the most good? If the republicans and democrats could show signs of cooperating with each other, show that they can be a functional government, restore some faith in the US government...
This again...
Avo, what the heck does that mean as an economic policy? Basically sounds like you just said "they should do something."
faith in the powers that be is an integral part of the capitalist machine
let's have the courage to admit Reagan and his whole philosophy has failed
avoiding nuclear war has broken the bank
lol@ yell
@ zarf:
saving is desctruction but...I want them set free. 
@justinian:
The gov can play a major role in the grabing for resources. Secondly, what they spend money on is very important. The US doesn't spend its military money wisely. They could even cut the budget a little and have a far better, more efective military. Eisenhower knew that long time ago.
I don't think it's hidden. I have INSTRUCTED by some Obama supporters that the USA can print an unlimited number of "national equity units" because the factors that caused Weimar and Zimbabwe and Argentina to have hyperinflation aren't here; the rest of the planet simply has to invest in the United States or the world economy will collapse.
Seems to me I heard in the 1990s that the stock market couldn't collapse because everybody had too much interest in keeping equity up. And I heard in the 2000s that the housing market wasn't going to collapse because everybody was involved. And I remember reading about this guy who said the European economy in 1909 had too much interconnectedness for an industrial war to be tolerable.
But I guess if they're certain the entire human race can't think of a better deal than loaning money to USA and then getting back less value, after inflation, than if they'd buried it in a hole in the backyard, then we might as well go all in, huh?
World Economy huh? So China cannot sell to Europe, and visa versa? Oil cannot stop being drilled until the US can offer actual value for the oil huh?
Imperial Forum → Politics → Obama to spend even more
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