R.I.P. UK

[briansd1]

[quote=DWCAP]
I really would like to hear the long term argument of how you get out of keynesian stimulus without going back into recessions.[/quote]

You don’t have to go back into recession.

You are simply trading some future economic growth, spread out over time, for the spending today. In the mean time, you preserve standards of living, social harmony and assure continuity.

Greenspan talked about government policy and technology bringing about moderation in the business cycle. I believe there is truth to that.

If the future, technology and improved productivity may allow us to more easily “pay back” today’s spending.

BTW, that’s what I believe is happening in the higher end housing markets. They are trading future real price appreciation for stability today. If you’re a homeowner, you’re grateful for the stability of your investment, as long as you have the wherewithal to service your debt. You don’t really care about 20 years or 30 years down the road.

[Arraya]

Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.

[Arraya]

Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.

[Arraya]

Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.

[Arraya]

Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.

[Arraya]

Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.

[Allan from Fallbrook]

[quote=Arraya]Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.[/quote]

Arraya: Which is pretty much the point here, isn’t it? A lot of monumental assumptions have been tossed out there and are now being utterly repudiated. The most dangerous of all these has been the fiction offered by European states that you can continue pensions, benefits, increasing worker wages and do so with a shrinking tax base and an ever larger government. That balloon is going to pop with a really loud bang.

[Allan from Fallbrook]

[quote=Arraya]Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.[/quote]

Arraya: Which is pretty much the point here, isn’t it? A lot of monumental assumptions have been tossed out there and are now being utterly repudiated. The most dangerous of all these has been the fiction offered by European states that you can continue pensions, benefits, increasing worker wages and do so with a shrinking tax base and an ever larger government. That balloon is going to pop with a really loud bang.

[Allan from Fallbrook]

[quote=Arraya]Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.[/quote]

Arraya: Which is pretty much the point here, isn’t it? A lot of monumental assumptions have been tossed out there and are now being utterly repudiated. The most dangerous of all these has been the fiction offered by European states that you can continue pensions, benefits, increasing worker wages and do so with a shrinking tax base and an ever larger government. That balloon is going to pop with a really loud bang.

[Allan from Fallbrook]

[quote=Arraya]Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.[/quote]

Arraya: Which is pretty much the point here, isn’t it? A lot of monumental assumptions have been tossed out there and are now being utterly repudiated. The most dangerous of all these has been the fiction offered by European states that you can continue pensions, benefits, increasing worker wages and do so with a shrinking tax base and an ever larger government. That balloon is going to pop with a really loud bang.

[Allan from Fallbrook]

[quote=Arraya]Brian, that sounds nice and all, but it rests on monumental assumptions. If these assumptions do not come to fruition, ends in disaster.[/quote]

Arraya: Which is pretty much the point here, isn’t it? A lot of monumental assumptions have been tossed out there and are now being utterly repudiated. The most dangerous of all these has been the fiction offered by European states that you can continue pensions, benefits, increasing worker wages and do so with a shrinking tax base and an ever larger government. That balloon is going to pop with a really loud bang.

[briansd1]

Arraya, I don’t see the disaster. Europe rose from the ashes of war. They can deal with a financial crisis.

It’s like going to college and incurring debt thinking that you will acquire better skills for more productivity and higher salary to pay back the debt. I would be silly to say, “I’m not going to college because I can’t be sure to pay back the debt, so I’ll be content to plug along.”

Recessions create unemployment and idle human capacity. The government should step in and help people retrain and offer them incentives to participate in economic activity.

I’m not proposing that the government continue the spending forever. The future test of leadership will be to cut spending and increase taxes when times are good.

The problem the US is facing now is that we cut taxes and increased spending during the boom years thereby creating a bubble economy. We should have increased taxes and cut spending to build a “savings account” for bad economic times.

We now have a bad recession, so the government should increase spending today to cushion the economy. A combination of tax increases and spending cuts will have to be implemented later when the economy has recovered.

[briansd1]

Arraya, I don’t see the disaster. Europe rose from the ashes of war. They can deal with a financial crisis.

It’s like going to college and incurring debt thinking that you will acquire better skills for more productivity and higher salary to pay back the debt. I would be silly to say, “I’m not going to college because I can’t be sure to pay back the debt, so I’ll be content to plug along.”

Recessions create unemployment and idle human capacity. The government should step in and help people retrain and offer them incentives to participate in economic activity.

I’m not proposing that the government continue the spending forever. The future test of leadership will be to cut spending and increase taxes when times are good.

The problem the US is facing now is that we cut taxes and increased spending during the boom years thereby creating a bubble economy. We should have increased taxes and cut spending to build a “savings account” for bad economic times.

We now have a bad recession, so the government should increase spending today to cushion the economy. A combination of tax increases and spending cuts will have to be implemented later when the economy has recovered.

[briansd1]

Arraya, I don’t see the disaster. Europe rose from the ashes of war. They can deal with a financial crisis.

It’s like going to college and incurring debt thinking that you will acquire better skills for more productivity and higher salary to pay back the debt. I would be silly to say, “I’m not going to college because I can’t be sure to pay back the debt, so I’ll be content to plug along.”

Recessions create unemployment and idle human capacity. The government should step in and help people retrain and offer them incentives to participate in economic activity.

I’m not proposing that the government continue the spending forever. The future test of leadership will be to cut spending and increase taxes when times are good.

The problem the US is facing now is that we cut taxes and increased spending during the boom years thereby creating a bubble economy. We should have increased taxes and cut spending to build a “savings account” for bad economic times.

We now have a bad recession, so the government should increase spending today to cushion the economy. A combination of tax increases and spending cuts will have to be implemented later when the economy has recovered.

[briansd1]

Arraya, I don’t see the disaster. Europe rose from the ashes of war. They can deal with a financial crisis.

It’s like going to college and incurring debt thinking that you will acquire better skills for more productivity and higher salary to pay back the debt. I would be silly to say, “I’m not going to college because I can’t be sure to pay back the debt, so I’ll be content to plug along.”

Recessions create unemployment and idle human capacity. The government should step in and help people retrain and offer them incentives to participate in economic activity.

I’m not proposing that the government continue the spending forever. The future test of leadership will be to cut spending and increase taxes when times are good.

The problem the US is facing now is that we cut taxes and increased spending during the boom years thereby creating a bubble economy. We should have increased taxes and cut spending to build a “savings account” for bad economic times.

We now have a bad recession, so the government should increase spending today to cushion the economy. A combination of tax increases and spending cuts will have to be implemented later when the economy has recovered.

[Author]

Posts