Many prominent Keynesian economists. Let me shed a little light on the subject for you (again). Keynesian economics doesn't work because we don't practice it right. You're supposed to spend in times of need and save in times of plenty. We spend in times of both, so when times of need come around, more debt being added to debt doesn't work. You, and your prominent economists, need to get a clue. These economists are only prominent because they support the status quo. That's it. Establishment.
You know, if that same multiplier is applied to the deficit and qe, the shortfall in economic activity is around 24% GDP (13% x 1.84), or 1/4'er the current labor force. I wrote a thread earlier in the year that forecasted the deficit around that. Problem is, those numbers don't factor in the loss of dollar reserve status = much higher consumer prices = larger GDP contraction. Realistically, when things fall apart, we're looking at a shortfall north of 30% GDP, from todays levels. That is absolute chaos.
Agreed. so let's do an effective stimulus one more time, yeah it's gonna hurt, and start taxing and accumulating a surplus when the business cycle is on a peak. We must never, ever, let the "taxes are too high" nonsense interfere with that saving. If we're gonna be an empire (and if we're not, some other nation will) then we need to pay for it.
And then there is the other side from the corruption. A woman in the border city of Laredo, Texas who was angry because she had been denied food stamps killed herself and shot and critically wounded her two children late on Monday, authorities said on Tuesday. The 38-year-old woman entered the Texas Health and Human Services Commission office in downtown Laredo on Monday afternoon and demanded to speak to a supervisor, said investigator Joe Baeza of the Laredo Police Department. The woman, whom he declined to identify, pulled out a handgun and started walking through the office, threatening several employees, he said. "About 11:45 last night, she hung up the phone with negotiators, and a little bit later, negotiators heard three shots," Baeza said on Tuesday. "What had happened was that she had shot each of her children once and herself once." http://ca.news.yahoo.com/woman-denied-food-stamps-kills-self-shoots-children-181629410.html
I, and many others, are completely fed up with this type of bullshit. A "stimulus" is nothing more than a backdoor bailout of some crony class that have bribed the politico's for this future entitlement. This country and its politicians are so far beyond corrupt that there is no possible chance that any stimulus will "work".
why the hell don't we stop spending instead of taxing more. We don't need more govt workers making six figures with mulitmillion dollar retirements... Not when they are making far more money they their equivalent in the private sector. Govt spending is a drain on economic growth. As was noted in another thread. GDP --- equals C+I+G--- but as the G gets larger it devours the growth. We don't want a GDP based on Govt growth in spending - we want a GDP with accelerating investment. If the empire is going to sustain itself - people who want to spend more need to be voted out of office.
Doesn't have to be that way. Most of the rest of the developed world, and some of the lesser developed world, used stimulus to good effect this time around. And I'm not so pessimistic as you, as we did have a couple of large dissent groups emerge in this downturn. So far they have accomplished little, but their arrival is a welcome warning.
You mean like socialist Europe, much of which now needs a bailout? Or some other developed part of the world?