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From Paul krugman:
"A few days ago, I read an authoritative-sounding paper in The American Economic Review, one of the leading journals in the field, arguing at length that the nation’s high unemployment rate had deep structural roots and wasn’t amenable to any quick solution. The author’s diagnosis was that the U.S. economy just wasn’t flexible enough to cope with rapid technological change. The paper was especially critical of programs like unemployment insurance, which it argued actually hurt workers because they reduced the incentive to adjust.
O.K., there’s something I didn’t tell you: The paper in question was published in June 1939. Just a few months later, World War II broke out, and the United States — though not yet at war itself — began a large military buildup, finally providing fiscal stimulus on a scale commensurate with the depth of the slump. And, in the two years after that article about the impossibility of rapid job creation was published, U.S. nonfarm employment rose 20 percent — the equivalent of creating 26 million jobs today."
Keynesianism:1 Retards: 0
I'll bet they think we ought to engage in rootin' tootin' austerity...afterall it's worked real well in Ireland, Spain, Greece, Italy, and so on. See link below. http://www.americanprogress.org/issu...e-u-s-economy/
Actually his example fails, as the economic environment and (at the time) federal government's capacity to issue effective monetary supplies to boost economic growth worked, but only because of the demand for a technological revolution.
And is he suggesting the government fabricate a marketplace for that sort of growth?
From Paul krugman:
"A few days ago, I read an authoritative-sounding paper in The American Economic Review, one of the leading journals in the field, arguing at length that the nation’s high unemployment rate had deep structural roots and wasn’t amenable to any quick solution. The author’s diagnosis was that the U.S. economy just wasn’t flexible enough to cope with rapid technological change. The paper was especially critical of programs like unemployment insurance, which it argued actually hurt workers because they reduced the incentive to adjust.
O.K., there’s something I didn’t tell you: The paper in question was published in June 1939. Just a few months later, World War II broke out, and the United States — though not yet at war itself — began a large military buildup, finally providing fiscal stimulus on a scale commensurate with the depth of the slump. And, in the two years after that article about the impossibility of rapid job creation was published, U.S. nonfarm employment rose 20 percent — the equivalent of creating 26 million jobs today."
Actually his example fails, as the economic environment and (at the time) federal government's capacity to issue effective monetary supplies to boost economic growth worked, but only because of the demand for a technological revolution.
And is he suggesting the government fabricate a marketplace for that sort of growth?
IT ISN'T THERE!
Several markets exist that need not fabrication...
-A entire, self-sufficient, energy infrastructure...The great plains SHOULD be the Saudi Arabia of Wind...Arizona, New Mexico, and Nevada SHOULD be the Saudi Arabia of Solar...Louisiana should be the Saudi of hydroelectric...North Dakota, Alaska, and our offshores need to be explored and their resources need to be extracted to ween ourselves from foreign natural resources.
-Transportation infrastructure is in heavy disrepair as well.
It wouldn't obviously be on the same scale as WW2 but massive federal investment in this infrastructure would spur heavy job growth......this coupled WITHOUT the contraction the GOP seems hellbent on imposing despite a glaring disregard for the ineffectiveness of austerity would be awfully damn helpful. Through the right complement of public investments and basic social safety nets, fiscal policy can lay a foundation to sustain economic growth over the long term. Recent research from the San Francisco Federal Reserve, for example, shows that a dollar of public investment today can lead to two dollars of economic acceleration sustained over 10 years.
Several markets exist that need not fabrication...
-A entire, self-sufficient, energy infrastructure...The great plains SHOULD be the Saudi Arabia of Wind...Arizona, New Mexico, and Nevada SHOULD be the Saudi Arabia of Solar...Louisiana should be the Saudi of hydroelectric...North Dakota, Alaska, and our offshores need to be explored and their resources need to be extracted to ween ourselves from foreign natural resources.
-Transportation infrastructure is in heavy disrepair as well.
That's great and all, but I don't think the federal government has the capacity to increase the money supply for such ventures, anymore. At least not without speeding up the inevitable decline of the dollar.
That ship has sailed. It sailed because of a lack of foresight, lack of respect for the dollar, and a lack of willingness to control spending and keep the deficit at serviceable levels.
It's no different than a small business which posts net losses annually, and has continued to borrow and accrue debt so as to stay afloat for many years, in hopes that their products would soon generate profit.
Well, lets say that small business finally recognized it needed to change its product to something more profitable, but would require another loan to retool it's production and operations. But because they are in such poor shape because of previous years of losses, they do not have the ability to borrow the funds to do such a thing.
The US is no different, we are approaching a zero-sum situation. We've dug a hole so damn deep, we are struggling to pay our bills, and have found ourselves in a perpetual cycle of borrowing to pay existing debt, and relying on an ever-gorwing base of foreign investment just to fund the budget.
That's great and all, but I don't think the federal government has the capacity to increase the money supply for such ventures, anymore. At least not without speeding up the inevitable decline of the dollar.
That ship has sailed. It sailed because of a lack of foresight, lack of respect for the dollar, and a lack of willingness to control spending and keep the deficit at serviceable levels.
It's no different than a small business which posts net losses annually, and has continued to borrow and accrue debt so as to stay afloat for many years, in hopes that their products would soon generate profit.
Well, lets say that small business finally recognized it needed to change its product to something more profitable, but would require another loan to retool it's production and operations. But because they are in such poor shape because of previous years of losses, they do not have the ability to borrow the funds to do such a thing.
The US is no different, we are approaching a zero-sum situation. We've dug a hole so damn deep, we are struggling to pay our bills, and have found ourselves in a perpetual cycle of borrowing to pay existing debt, and relying on an ever-gorwing base of foreign investment just to fund the budget.
There is nothing left.
The issue is that we aren't "out" of money. Technically we can never be "out" as long as the US is regarded as credible internationally which won't be in question assuming we stop this bullsh*t debt-ceiling game....There really are no signs currently of inflation...our inflation percentage is so infanticimal. And the small business/family household comparisons really don't work because the US is an autonomus issuer of our own currency....essentially the only way we can't meet our debt obligations is we lose the key to the printing press. A family needs to manage it's debt because it's money source is finite...the USA and other autonomous currency issuer's money supplies are essentially unlimited.
If we want to spend 30 Trillion dollars tomorrow...we could. Obviously it would have inflationary impacts but we could do it.
Read this article called pragmatic capitalism...it goes into a better explanatoin than I can here on CD about monetary realism. It's a little lengthy but it makes a lot of sense and I think you'll enjoy it.
Here is the thing:
More long term unemployment than when Obama took office in 2008
More workforce dropouts than when Obama took office in 2008
More foodstamp recipients than when Obama took office in 2008
Higher price of gas than when Obama took office in 2008
More High Unemployment states than when Obama took office in 2008
Misery index higher than when Obama took office in 2008
Food costs are higher than when Obama took office in 2008
Home values dropped than when Obama took office in 2008
Mortgage delinquencies higher than when Obama took office in 2008
National Debt Higher than when Obama took office in 2008
Falsely inflated markets due to QE
Propaganda machine that is the MSM media and a government that controls it very nicely
------- Bottom line is that we are far worse off than we were 4 years ago as a nation - anyone who is foolish enough to parrot Harry Reid and say we are in a recovery is just an idiot.
Bottom line, quit listening to fox - they lie.
* Unemployment was on the rise in 2008 when Obama took office. Under Bush we were losing 700000 jobs per month. Unemployment peaked in 2009 at 11% then came down to the present 7.9%. So of course Fox didn't lie, since Obama had no control over these issues on day one of his presidency. Really now...
* Food stamps have increased under every president, including Bush. Population has increased. The working poor, including Wal-Mart type workers, have increased in number courtesy of repub trickle-down. FactCheck.org : Newt’s Faulty Food-Stamp Claim
I thought Corporations were greedy entities owned by Republicans. I would think Republicans would be doing everything in their power to improve the economy.
Well Trapper, you would think so, but repubs have engaged in a publicly-stated agenda to tank the economy and blame Obama for it. Repubs are opposing proposals like the American Jobs Act which they previously supported. What could be the explanation for this? Their strategy is to suffocate the economy for the sake of political capital. July 4 infamy: Republicans try to destroy the American economy - The Hill's Pundits Blog
From the article: ** "July 4 the Republican Party is divided between the "hope America fails" Republicans, who appear to actively want joblessness to rise to seek political gain, and the "radical Republicans" who adore Ayn Rand, like Paul and Ryan, who favor extremist economic policies that would make America fail (as Republican economic policies often do)".
** "Mitch McConnell has said his No. 1 goal is to destroy President Obama, not improve our economy, and has abused the rules of the Senate to obstruct every major jobs program for more than two years".
This is all on public record. McConnell and house repubs are carrying through on their threat, but it didn't work so well in the last election. Since they can't win a fair election, they must now rely upon more dirty tricks for 2014.
Quote:
Originally Posted by Mr.XXX
Unemployment up 7.9%, 169,000 Americans dropped out of the labor force...basically gave up looking for work...
Yea things are just peachy!!!!
Unemployment is not "up 7.9%", it is recently up from 7.8% and fluctuating. It was 11% in 2009 courtesy of repub trickle-down and outsourcing.
Unemployment is not "up 7.9%", it is recently up from 7.8% and fluctuating. It was 11% in 2009 courtesy of repub trickle-down and outsourcing.
I luv how you people spin data...the reality is if you took into account how many dropped out the work force...I bet
the unemployment rate would easily be 15% or higher...
Quote:
It was 11% in 2009 courtesy of repub trickle-down and outsourcing.
You just keep trying to convince yourself that socialism works...
The issue is that we aren't "out" of money. Technically we can never be "out" as long as the US is regarded as credible internationally which won't be in question assuming we stop this bullsh*t debt-ceiling game....There really are no signs currently of inflation...our inflation percentage is so infanticimal. And the small business/family household comparisons really don't work because the US is an autonomus issuer of our own currency....essentially the only way we can't meet our debt obligations is we lose the key to the printing press. A family needs to manage it's debt because it's money source is finite...the USA and other autonomous currency issuer's money supplies are essentially unlimited.
If we want to spend 30 Trillion dollars tomorrow...we could. Obviously it would have inflationary impacts but we could do it.
Read this article called pragmatic capitalism...it goes into a better explanatoin than I can here on CD about monetary realism. It's a little lengthy but it makes a lot of sense and I think you'll enjoy it.
Thanks for the link and I will definitely read it and get back to ya.
As far as where my underlying concerns are really reinforced about our monetary policy, is we literally have our largest creditor, China, flat out urging us to control spending and exercise a bit more diligent fiscal responsibility or they will have no other option but to increase their risk assessment of our treasury.
They know they have a very large vested interest into the survival of the dollar, as they will receive dividends for decades on what they've already lent.
If our creditors have cause for concern about the viability of the dollar, we should, too. I know there are other factors involved, but there is no denying that our investors are worried, and an economy which relies on an ever-growing base of investment to fund an inflated budget, that is a big, red flag.
If you really stop and think about it, the only way to pay off the kind of debt we've amassed, is to flood the market and inflate the currency. Our creditors will be pissed, but I don't see any other angle.
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Really now...
