Unemployment extension still undecided as over a million lose benefits!!!

[Ghost of Cutten]

Quote from the1:

I couldn't agree more. Houses should be left to fall to their intrinsic value but that would trigger TARP 2.0 with an attitude.

Yes, and? In Asia in 1997-98 that is exactly what happened. The governments did not have welfare states to fund, and they did not have enough money to bail out the banks. So the banks basically went bust en masse. By 1999 the economy was rebounding rapidly and by 2000 the economies were back to normal, they then grew for a whole decade before the 2008 recession, and in 2009 and this year they are growing normally again.

In other words, the economy had 18 bad months as the market cleared and badly-managed businesses went broke, then without any government interference it rebounded as the stronger surviving companies picked up the slack, hired the cheap unemployed workers, and started delivering products and services at lower prices that people could afford. Governments did not take on debt of 100%+ of GDP to cripple future generations.

Meanwhile Japan did exactly as you said and endured 20 years of stagnation.

The relative performance of Asia vs Japan, and nowadays Asia vs the west, shows that a big government that "helps" the economy during recession is a terrible disaster that spells long-term societal bankruptcy and ruin. Keynesian policies didn't work in the 1930s (where unemployment was 10-20% for the whole decade), they didn't work in Japan for 20 years, they didn't work in the 1970s, and they won't work now.

 

[Trader666]

Exactly. I know a kid who's in school full time but still made over $100K last year through a part time business he started, cleaning out foreclosed houses and selling what people leave behind.

But I disagree with your last point. Right now the government is rewarding those sitting on their asses and whining with 2+ years of welfare.

Quote from Ghost of Cutten:

There is always a job, it's just a matter of what you will work for. I will hire you for $1 per hour, for example. I am pretty sure someone else will hire you for more than that.

Also, there is always self-employment. Go to Wal-Mart, buy a bucket, ladder, mop, and some cleaning fluids, and go knock on doors offering to clean windows. Or get a mower and do people's lawns etc. Or offer your services looking for cheap repossessed homes for sale. I'm quite interested in bargains in places like Vegas and Detroit, but there is a shortage of people willing to be buyer's agents for a cheap price. If you spent the last 12 months learning about real estate and offering buying agent services for 0.5-1% of property value, you'd be able to make 50k+ easily for vulture investors.

As always, effort and initiative are reward, sitting on your ass and whining are not.

 

[Scataphagos]

Quote from Petsamo:

The unemployed and homeless can live in tent cities. Give them food stamps, they can survive, just like they do overseas in poor countries. These handouts have to stop.

Learn from the illegal alien who risks his life crossing the border, coming here, finding a job. He even has enough money to send home to Mexico.

"Social Support" at taxpayer expense should be 3 meals a day and a cot in a shelter. No money for cigarettes, alcohol, gambling, cell phones.

If they want better than that in their, they'll find a job and work their way up. Grandpa always used to say, "the world doesn't owe you a living.. make something of yourself". Still true.

 

[dumb_mother]

Quote from Ghost of Cutten:

Yes, and? In Asia in 1997-98 that is exactly what happened. The governments did not have welfare states to fund, and they did not have enough money to bail out the banks. So the banks basically went bust en masse. By 1999 the economy was rebounding rapidly and by 2000 the economies were back to normal, they then grew for a whole decade before the 2008 recession, and in 2009 and this year they are growing normally again.

In other words, the economy had 18 bad months as the market cleared and badly-managed businesses went broke, then without any government interference it rebounded as the stronger surviving companies picked up the slack, hired the cheap unemployed workers, and started delivering products and services at lower prices that people could afford. Governments did not take on debt of 100%+ of GDP to cripple future generations.

Meanwhile Japan did exactly as you said and endured 20 years of stagnation.

The relative performance of Asia vs Japan, and nowadays Asia vs the west, shows that a big government that "helps" the economy during recession is a terrible disaster that spells long-term societal bankruptcy and ruin. Keynesian policies didn't work in the 1930s (where unemployment was 10-20% for the whole decade), they didn't work in Japan for 20 years, they didn't work in the 1970s, and they won't work now.

+1

 

[Mike Morrison]

If I were in charge we would be at full employment within 1 year, because I would give everyone without a job 1 year to get one. Anyone unemployed after that I would have executed.

There may just be too many people.

Hey, I'm a problem solver what can I say?

 

[Lucrum]

Quote from olias:

I would say they hurt the economy because we are paying people (a lot of people) to do nothing. There is no production. And there's no motivation to get productive because benefits keep getting extended.

Quote from clacy:

I cannot see how anything longer than 6 months could be considered reasonable.

Quote from The Big D:

Well, it's a good start. In order to reduce unemployment we have to reduce the cost of labor to make it worth hiring people. In order to do that, we have to get people to take jobs at a lower salary than what they made last time around. And in order to do that, we need to stop paying them benefits at a fraction of their old salary. It makes sitting around and doing nothing too attractive.

Quote from 4EXJOE:

Or just round up all of the illegal immigrants taking jobs from citizens and get people off their high horse that certain jobs are "beneath" them.

Social safety nets should be in place for those who can't provide for themselves, not those who refuse to do so.

Quote from Petsamo:

Two years of unemployment compensation ... Go get a job

And if you voted for Obama, you got you deserve to get your a$$ reemed.

All good points.

 

[promagma]

Quote from Scataphagos:

"Social Support" at taxpayer expense should be 3 meals a day and a cot in a shelter. No money for cigarettes, alcohol, gambling, cell phones.

If they want better than that in their, they'll find a job and work their way up. Grandpa always used to say, "the world doesn't owe you a living.. make something of yourself". Still true.

indeed, you solve homelessness too

 

[pupu]

Grandpa is dead and long burried and so are his crazy rants.
Now cough up the pay checks for year 3!

 

[MKTrader]

Quote from Ghost of Cutten:

Yes, and? In Asia in 1997-98 that is exactly what happened. The governments did not have welfare states to fund, and they did not have enough money to bail out the banks. So the banks basically went bust en masse. By 1999 the economy was rebounding rapidly and by 2000 the economies were back to normal, they then grew for a whole decade before the 2008 recession, and in 2009 and this year they are growing normally again.

In other words, the economy had 18 bad months as the market cleared and badly-managed businesses went broke, then without any government interference it rebounded as the stronger surviving companies picked up the slack, hired the cheap unemployed workers, and started delivering products and services at lower prices that people could afford. Governments did not take on debt of 100%+ of GDP to cripple future generations.

Meanwhile Japan did exactly as you said and endured 20 years of stagnation.

The relative performance of Asia vs Japan, and nowadays Asia vs the west, shows that a big government that "helps" the economy during recession is a terrible disaster that spells long-term societal bankruptcy and ruin. Keynesian policies didn't work in the 1930s (where unemployment was 10-20% for the whole decade), they didn't work in Japan for 20 years, they didn't work in the 1970s, and they won't work now.

Great post. The same could be said for the U.S. depression in 1920-1921...and basically all other depressions the U.S. had before the "Great" one. It was only then that Keynesian madness took over.

 

[vulture]

Quote from MKTrader:

Great post. The same could be said for the U.S. depression in 1920-1921...and basically all other depressions the U.S. had before the "Great" one. It was only then that Keynesian madness took over.

The one AND only positive I can take out of this is that finally there is some attention paid towards the fact that this is a monetary "idelogy" (i.e. Keynesian), 2 years ago you had the feeling as if there were no history outside the previous 20-30 years in this country. That it was written in stone that any and all recessions be met with ever increasing government spending and stimulus.