U.S. Debt Is Not Like Europe’s: It’s Time to Spend Our Way to Recovery, Says Galbrait

[Free Thinker]

Quote from Max E. Pad:

This is spot on. Good call.

Keynesians and big government supporters always seem to ignore the velocity of money, it is the single concept that continues to baffle them to this day, and it is also the main reason why government stimulus and keynesian economics has failed repeatedly over time.

The best metaphor i can think of for the failure of the stimulus is this. If you had a car that was stalled on the side of the road because it ran out of gas most people would logically think to stick gas in the GAS TANK but the plan of big government supporters is to simply douse the entire car in gasoline and hope some of it eventually makes its way into the tank.

And if you are Obama, when that fails, the plan is to simply light a match, and blame it on the republican kid down the road when the whole car blows up.

are you smarter than a fifth grader? one has to wonder sometimes. you touched on it slightly but your right wing ideology got in the way.
you almost hit on something when you said"velocity of money". but then it became obvious you dont have a clue what it means.
the stimulus argument is simply this. the government is responsible for funding certain things like airports,roads, water systems,sewage systems ect. these things are already falling apart and will eventually have to be repaired no matter what happens. repairing these things even has a roi through productivity that can be calculated.
right now the government can borrow long term money at less than 4%. if the government funds these projects now with 4% money and the roi is 3% our actual cost is 1%.
an added benefit from funding these projects is the "velocity of money". workers get wages,suppliers get orders and on down the food chain increasing the velocity of money.
the last big infrastructure project we did was the interstate highway systen funded by deficit spending. who can argue that was wasted money?

 

[Max E.]

Yeah just like how the last stimulus was supposed to go to fixing our infrastructure, except none of it ever got there and Obama admitted himself that there is no such thing as a shovel ready job. By the time any of the stimulus money even got out the door the economy was recovering on its own accord, so your girlfriend Obama just fucked away a trillion dollars for absolutely no reason. It has already been weell documented that the stimulus money didnt have the multiplier effect they were looking for, because of how long it takes for money to be shifted around in the hands of these bearecrats, and also because of how much waste fraud and abuse there is whenever money is put into the hands of the government. When you spend money on projects like teaching africans to wash their penis at 1 million dollars a pop it kills the multiplier, because that money is solely going into the hands of the scientists, and its not even being spent in our own country. You are the one who doesnt seem to understand the concept of the velocity of money.

You know its funny because Obama has already tipped his hand as to where this next package is going to be fucked away but people like you are not paying attention. He has been out campaigning now for the last 4 weeks, telling people how evil republicans are because they supposedly want to see teachers and fire fighters lose their job.

But wait wasnt the stimulus supposed to go to infrastructure??? WTF do teachers and firefighters have to do with it??? He has basically admitted that his package is nothing more than a bailiout to the states, to avoid the decisions they are going to have to make eventually anyways. His package is going to be nothing more than another pay off to all the public sector unions goons he wants to vote for him again in 2012.

No thanks, you can have your stimulus.

Quote from Free Thinker:

are you smarter than a fifth grader? one has to wonder sometimes. you touched on it slightly but your right wing ideology got in the way.
you almost hit on something when you said"velocity of money". but then it became obvious you dont have a clue what it means.
the stimulus argument is simply this. the government is responsible for funding certain things like airports,roads, water systems,sewage systems ect. these things are already falling apart and will eventually have to be repaired no matter what happens. repairing these things even has a roi through productivity that can be calculated.
right now the government can borrow long term money at less than 4%. if the government funds these projects now with 4% money and the roi is 3% our actual cost is 1%.
an added benefit from funding these projects is the "velocity of money". workers get wages,suppliers get orders and on down the food chain increasing the velocity of money.
the last big infrastructure project we did was the interstate highway systen funded by deficit spending. who can argue that was wasted money?

 

[Ricter]

Quote from Free Thinker:

are you smarter than a fifth grader? one has to wonder sometimes. you touched on it slightly but your right wing ideology got in the way.
you almost hit on something when you said"velocity of money". but then it became obvious you dont have a clue what it means.
the stimulus argument is simply this. the government is responsible for funding certain things like airports,roads, water systems,sewage systems ect. these things are already falling apart and will eventually have to be repaired no matter what happens. repairing these things even has a roi through productivity that can be calculated.
right now the government can borrow long term money at less than 4%. if the government funds these projects now with 4% money and the roi is 3% our actual cost is 1%.
an added benefit from funding these projects is the "velocity of money". workers get wages,suppliers get orders and on down the food chain increasing the velocity of money.
the last big infrastructure project we did was the interstate highway systen funded by deficit spending. who can argue that was wasted money?

Well said, though I do wish you'd capitalize, punctuate, and run it through a spell-checker. : )

 

[Free Thinker]

Quote from Ricter:

Well said, though I do wish you'd capitalize, punctuate, and run it through a spell-checker. : )

i confess i am a sloppy 2 finger typer.its hard to use caps when you 2 finger type.
when i was in school i actually had typing class with typewriters and carbon paper. you old enough to remember carbon paper?
i was a typical kid back then. since computers had not been invented yet i thought why the hell should i care about learning how to type. i am not going to be a secretary. so what do i do every day now? type.
the moral of the story is you just never know.

 

[Ricter]

Quote from Free Thinker:

i confess i am a sloppy 2 finger typer. when i was in school i actually had typing class with typewriters and carbon paper. you old enough to remember carbon paper?
i was a typical kid back then. i thought why the hell should i care about learning how to type. i am not going to be a secretary. so what do i do every day now? type.
the moral of the story is you just never know.

Hehe, yeah, I remember carbon paper, and slide-rules.

 

[Lucrum]

Quote from Ricter:

My point is, not all spending is bad.

No it's not, BUT your analogy did a poor job of showing it

I agree there is waste, but I submit that waste can be minimized.

Theoretically YES, but practically no one is seriously proposing less waste let alone any democrat I know of.

I also realize that just as I think there are some programs we don't need, another guy thinks we do need them, and we're both equally adamant about it.

Either we need them or we don't. Sometimes, dept of ED for example, it's black and white, cut and dry. What have test scores done since it's inception? What has happened to education expenses since it's exception? Either the agency in question is cost effectively achieving it's mandated goal or it's not.

That knowledge, if it really sinks in, requires one to "man up" and learn to compromise.

There IS a time for compromise. And there are times when a compromise will solve nothing and benefit no one, except maybe political cronies.. Much of the legislation from the past several decades is a watered down compromise, hows it working out so far?