Letter from 150 Ivy Economists Declaring Opposition against raising debt limit

Discussion in 'Politics' started by Tsing Tao, Jun 1, 2011.

  1. Tsing Tao

    Tsing Tao

    <a title="View 150 Economists on Scribd" href="http://www.scribd.com/doc/56800037/150-Economists" style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block; text-decoration: underline;">150 Economists</a><iframe class="scribd_iframe_embed" src="http://www.scribd.com/embeds/56800037/content?start_page=1&view_mode=list&access_key=key-1cpm63h4ty6tmekavnro" data-auto-height="true" data-aspect-ratio="0.772727272727273" scrolling="no" id="doc_10790" width="100%" height="600" frameborder="0"></iframe><script type="text/javascript">(function() { var scribd = document.createElement("script"); scribd.type = "text/javascript"; scribd.async = true; scribd.src = "http://www.scribd.com/javascripts/embed_code/inject.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(scribd, s); })();</script>
  2. Ricter


    American jobs are already "destroyed". They're either non-existent, to the tune of 9% UE, non-present thanks to offshoring, or they've been diluted to service sector wages. The budget problem is a problem of demand. This is important, because you can restore Americans' demand (ie. access to resources) and fix the budget, or you can merely try to fix the budget alone and leave the root problem untouched. The latter leaves no one happy, not Americans, not our creditors.

    Anyway, since you included a number, 150, I have to ask, how many economists total are there in the US today?
  3. Tsing Tao

    Tsing Tao

    Agree with you on the root problem, but would probably disagree with you on who solves that root problem. You would, I'm guessing, say it is government. I would say that the private sector is the only sector capable of solving the job problem. However, in order for them to want to do so, the national environment has to be more advantageous that what they can find elsewhere - or they leave. It's really that simple.

    Regarding how many economists - I don't know the number. Certainly a lot more than 150. Is that supposed to diminish the letter's importance? Do you have a letter somewhere that has 250 or 1000 economists urging a raising of the debt limit?
  4. Ricter


    The trouble with relying on the private sector to solve the demand problem is that of freeriders. Why should I incur losses by needlessly raising my headcount, if I know that you're going to incur the costs? After all, I'll still get any demand created that you paid for. The proper entity to gamble in this predicament is government, because the risk has to be spread as thinly as possible.
  5. pspr


  6. Tsing Tao

    Tsing Tao


    Please cite an example of what you mean, because I cannot figure out what the hell you are talking about. Sorry.
  7. Ricter


    You want the private sector to fix demand how, by hiring before sales justify it?
  8. Tsing Tao

    Tsing Tao

    The Private Sector will hire before sales come, under several conditions - none of which are present:

    1. Hospitable tax environment.
    2. A belief that the economy is improving.
    3. A cost structure that is declining.

    What we have now:

    1. Specter of rising taxes (Obamacare, budgets on the state and federal level etc).
    2. Economically dismal data with the Government/Fed as the only support.
    3. Spiking commodity prices and inflation.

    You'll never get any business to hire under these circumstances. Never.
  9. in a related story: one economist named Ben has ordered 1000 new printing presses.