Not at all. Free trade isn't fair trade. America was built on tariffs. China was built on tariffs. Free trade between nations with similar labor cost is fine. Ron Paul advocates free trade between all nations, except with minimal to no regulation and taxation. Under that policy regime, yes, free trade with every nation could work, because capital would flow into the United States. But under currency policy and unit labor cost, we bleed wealth to China.
Tearing down monopolies, duopolies, big sisters, big government to return to free economy through smaller independent competing enterprises, privatized government agencies doing targeted work and eventually becoming independent businesses. Austerity is an old concept and will not work now. If the deficit is spent wisely to help people dependent on government to attain economic independence that would work. Currently it is wasted to support local and national political elections through paying their supporters in kind and in jobs/retirement at the expense of the entire country. Certain amount of excess of liquidity with fractional banking and financial engineering in the environment of free economy would contribute to accelerated economic growth. Current political constrains and control over economy using monopolistic banking and inefficient monopolistic enterprises creates economic stagnation exacerbated by inflation.
This is not applicable to countries with their own fiat currency. The U.S. can force the equivalent of a creditor's agreement on its creditors by paying its debts using dollars that have less buying power than the dollars borrowed, the result is equivalent to negotiating a lowered interest rate on debt.
what to do? dont elect republicans. bush when faced with a surplus exactly at the time the payback part of keynesian economics is supposed to kick in and build surpluses, decided to give it all back as tax cuts for the rich. look where we ended up...... "Bush argued that unspent government funds should be returned to taxpayers, saying "the surplus is not the government's money. The surplus is the people's ..."
To politicize fiscal corruption in Washington as only a Left or Right phenomenon is nothing but idiotic partisan hackery. The Dems have presided over some of the largest budgets, deficits and unsustainable social programs, in history. The whole notion of one side "doing it right" is complete horseshit. That's why we're still in this mess. Because people can't see through the idiotic left-versus-right demagoguery. They think there's a difference when there's zero.
you are just wrong as usual. had dems been in power i doubt we would have had tax cuts for the rich or two needless 10 year 3 trillion dollar wars. i realize serious thinking on the subject would force you to make unpleasnt conclusions but its worth a try.
Guys this is beyond democrats/republicans. Now the country needs visionary that would be above that all and had vision for the next 50 years and very broad knowledge in all things that matter for making real progress.
Keynes enthusiasts forget the human element. Human politicians will never be responsible enough to pay down debt in the good times. I guess the same could be said for the Austrians. It's too easy to grow government by those in power. Probably what we currently have, is about as perfect as it will get, and therefore booms and busts will always occur.
all we need is some measure of compromise. obama has offered $3 in spending cuts for every $1 in new revenue. its a reasonable compromise that could go a long way toward fixing the problem. the only thing standing in the way is republicans refusal to compromise.