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Post by AztecWilliam on Aug 8, 2010 20:44:44 GMT -8
In a short blast at outgoing Obama economic adviser Christina Romer, Tim Cavanaugh makes the claim that Romer, before signing on with The One, had declared that government stimulus had not helped end or mitigate the Great Depression. There followed a spirited discussion by many readers with varying opinions on that point. A good case was made by some that what Romer actually said was that FDR's stimulus was too SMALL! Anyway, one respondent made this comment, and I think his point is very much on target. . . Over a long enough time-frame, I think you (sic) the argument that stimulus spending fails is pretty bullet-proof. As we have seen several times over the last couple of years, pumping money into a sector of the economy will indeed goose that sector, while the money lasts. Supporters of the stimulus focus on this very short-term, unsustainable result.
However, the money can't last forever, and when it runs out, the economy snaps back to where it was, so over the medium term, you get no gain. And over the longer term, you have to pay off the debt you incurred for the stimulus, so you will, yes will, wind up worse off.Please remember the Cash for Clunkers program and the home mortgage incentive. Car sales and home sales went up sharply, but when those programs ended, the sales figures dropped like bricks thrown off the Laurel Street bridge. In other words, as means of helping the economy start a long-term expansion they were at best busts. The piece that brought that response is here . . . reason.com/blog/2010/08/06/good-riddance-christina-romer#commentcontainerAzWm |
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Post by aztecwin on Aug 9, 2010 12:28:42 GMT -8
I am confused about what Romer said and when did she say it. Seems like I remember her as pretty much a "Supply Sider" before signing on with Obama. I think that she will clear up her thinking after a while to let the dust settle. She will tell us why she really left. I suspect it is over all the misguided spending.
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Post by The Great Aztec Joe on Aug 10, 2010 13:07:41 GMT -8
Gentlemen, please remember that 70 percent of our economy is service sector. For the most part we work in the service industry. We pay for services. People who work in those services pay for other services. The circulation of money keeps the service sector humming and flowing like a pretty woman being serviced.
Failure to stimulate that Service Sector will leave a lot of women and men unsatisfied. And their unsatisfaction spreads throughout the community. As the song went, "I can't get no satisfaction."
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Post by aztec70 on Aug 10, 2010 14:42:20 GMT -8
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Post by davdesid on Aug 10, 2010 15:31:54 GMT -8
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Post by aztecwin on Aug 10, 2010 16:04:46 GMT -8
Wow! This guy has contempt for Bush 42 and even more for Obama. He sees the problems just about how I do, but we have different ideas about what will get us out of it if that is possible. I keep in mind that he is trying to sell his book so that taints what he says a little, but all in all a pretty sound mind. |
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Post by aztecwin on Aug 10, 2010 16:07:24 GMT -8
I think you should have kept going. I found some of it pretty good after you get through the baloney in the beginning that was from the author and not the economist. |
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Post by davdesid on Aug 10, 2010 16:45:43 GMT -8
I think you should have kept going. I found some of it pretty good after you get through the baloney in the beginning that was from the author and not the economist. Okay, thanks. I went back and read the whole enchilada, and he does have a few good observations mixed with the bs. Still, the current clown in the White House, and his pack of maggots are killing the economy. ***** " We have reached a point where the negative effects of Obama's policies are simply too significant to ignore...
"By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses." -Ivan Seidenberg, Verizon CEO, 6/22/10- (Benito! Benito! You knew it all along! You nailed it when you said, "....the deciding power in this question cannot be the individual, but the State alone....") " We are now, I fear, in the early stages of a third depression." -Paul Krugman, NYT, 6/27/10- " OBAMA'S ANTI-BUSINESS POLICIES ARE OUR ECONOMIC KATRINA" -Mort Zuckerman, US News and World Report, 7/16/10- Of course, those quotes are from right wing "wing-nuts", so take it with a grain of salt. |
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Post by The Great Aztec Joe on Aug 10, 2010 20:34:37 GMT -8
I think you should have kept going. I found some of it pretty good after you get through the baloney in the beginning that was from the author and not the economist. Okay, thanks. I went back and read the whole enchilada, and he does have a few good observations mixed with the bs. Still, the current clown in the White House, and his pack of maggots are killing the economy. ***** " We have reached a point where the negative effects of Obama's policies are simply too significant to ignore...
"By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses." -Ivan Seidenberg, Verizon CEO, 6/22/10- (Benito! Benito! You knew it all along! You nailed it when you said, "....the deciding power in this question cannot be the individual, but the State alone....") " We are now, I fear, in the early stages of a third depression." -Paul Krugman, NYT, 6/27/10- " OBAMA'S ANTI-BUSINESS POLICIES ARE OUR ECONOMIC KATRINA" -Mort Zuckerman, US News and World Report, 7/16/10- Of course, those quotes are from right wing "wing-nuts", so take it with a grain of salt. The economy was screwed when Obama took office. Unfortunately, it has only improved a little bit in manufacturing in the year and a half that Obama has been office. He has not come up with a "Bring the Water to the Arid West" type program that I have been calling for for so long. It needs to be done to put people back to work, and it needs to be done to cut into the Balance of Trade deficit. |
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