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bucheon bum
Joined: 16 Jan 2003
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 Posted: Mon Jan 12, 2009 7:41 pm Post subject: |
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| Bigfeet wrote: |
The solution is to do the reverse of what got us into this mess. We need to raise tax and cut spending. But people don't have the guts to do it. So instead of going poor by our own choice we will go poor by the choice of others. |
People aren't going to do it because raising taxes and cutting spending would slow down the economy even more now. It should have been done earlier when the economy was doing well. |
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blade
Joined: 30 Jun 2007
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| Posted: Mon Jan 12, 2009 8:13 pm Post subject: |
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| bucheon bum wrote: |
| Bigfeet wrote: |
The solution is to do the reverse of what got us into this mess. We need to raise tax and cut spending. But people don't have the guts to do it. So instead of going poor by our own choice we will go poor by the choice of others. |
People aren't going to do it because raising taxes and cutting spending would slow down the economy even more now. It should have been done earlier when the economy was doing well. |
Yes, raising taxes and cutting spending is only something poor south American or other less developed countries are supposed to do in times of crisis. |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Mon Jan 12, 2009 9:29 pm Post subject: |
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| right dude. have anything to prove that assertion? Unless you mean cutting subsidies, then you would be correct. But I was referring to overall spending, not specific things. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Mon Jan 12, 2009 10:51 pm Post subject: |
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| bucheon bum wrote: |
People aren't going to do it because raising taxes and cutting spending would slow down the economy even more now. It should have been done earlier when the economy was doing well. |
I do hope that you don't mean the boom years of the 2000's as your reference point of the economy doing well. That was debt and little more.
But an economy can't be "stimulated" into growth. Bad debts need to clear, bad business fail and the rest. The reason this present shit-storm is so severe is because the previous recessions were not allowed to function properly (the Fed lowered rates). If by an act of Vishnu Obama is actually able to "stimulate" the economy into growth by yet even more debt, the pain will be even greater than this. But it just isn't possible.
This is the end of a 20 year super-cycle (I stole that from Andy Xie). The political economy is breaking down. I'd love to thank Bush, but more sober analysis is needed. The Federal Reserve System is inappropriate and Keynes was high as a kite. |
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