What we will replace Iraq war with? (Keynesianism)

Discussion in 'Economics' started by crgarcia, Jan 12, 2009.

  1. I don't think anyone who says the next war is on Capitalism is to be taken seriously.
     
    #11     Jan 12, 2009
  2. War on capitalism? Capitalism is dead. Capitalism killed it.
     
    #12     Jan 12, 2009
  3. piezoe

    piezoe

    EMR, i am puzzled. You say "Universal Health care will cause your taxes to rise."

    That seems obvious, but we already have the highest cost health care in the world, higher than all the nations with Universal Health care. So, even though taxes would go up, wouldn't the total cost of health care, taxes included, go down if we were more like other countries, or am i missing something?

    I suppose the answer to the question of why doctors want to come to the US to practice is that they will make more money. That also seems fairly obvious.

    In any case, the days of the de facto, government sponsored American medical cartel are limited. The fraction of US GDP consumed by medical costs can not increase beyond 100%, because then there would be nothing left for defense contractors.

    :D :D
     
    #13     Jan 12, 2009
  4. Illum

    Illum

    As Marx said it would
     
    #14     Jan 12, 2009
  5. Right now economists are referring to how we got out of the Great Depression. I believe it is common knowledge that the new deal did not get us out, but the entrance to wwII did.

    A new war?

    So by increasing government spending (hello Keynes) we "should" be able to get out of this slow down just like during WW2 right?

    Well we can't fight a war where the same % of men will be drawn out of the economy via draft+volunteering for the military. I think it was 11 million back then but don't quote me.

    Times are different now because the problems are not the same.

    Currently we have a A&W problem with the relationship between banks and would be lenders. Combine that with banks hoarding cash to offset their toxic assets and increased lending standards we have a major freeze up.

    Stimulus? No chance that will help, people will not spend it. They will use a stimulus to pay off debt or save.
    So i'm not seeing inflation anytime in the short term.

    Bottom line: Solve the A&W problem and we'll get this ball rolling.

    A&W= Able and Willing
     
    #15     Jan 12, 2009
  6. The interesting---and worrying---thing about this is that the evidence would seem to suggest that fiscal spending on the war effort did not pull the US economy out of the Depression as much as the demand created from abroad for the US's exports. If fiscal spending wasn't the real answer but instead foreign demand then the analogy to the WWII answer to the Great Depression might not be applicable to the current situation or at the very least suggests another solution.
     
    #16     Jan 12, 2009
  7. Exactly, and when you really do think about these implications its very worrying.

    What are we capable of producing that the world will increase their demand for? Thereby allowing us to create jobs and pull ourselves out of this recession/depression without deficit spending.
     
    #17     Jan 13, 2009

  8. That is the crux of the issue.. whether or not we all pay for something (unfair or not) in order for our companies to compete on a fair field globally.

    For UHC, there would need to be MAJOR tax restructuring, because we shouldn't be paying 40%+ for taxes in a 'capitalist' country. But that's another can of worms...
     
    #18     Jan 13, 2009
  9. buying up bad debt, tax cuts, invade iran, more topps in afghanistan, rebate checks,
     
    #19     Jan 13, 2009
  10. burn8

    burn8

    It's called mis-allocation of resources CT. Get in some more econ classes if you can. Preferably not at a gov. institution.

    -burn8
     
    #20     Jan 13, 2009