Stimulis: Because All Economies Have Performance Issues

15 Comments

• Burro

  July 15, 2009
  4:46 PM

  Just for the record, I was the one who coined the term “Baracktile Dysfunction” on my blog.
  .-= Burro´s last blog ..Master of the House: From capitalist empire to medieval fiefdom in 6 months =-.

  Reply
• Boilermaker

  July 16, 2009
  5:09 PM

  You know it’s ok to disagree with the plan of action that this administration has gone with to try to stabilize the failing U.S. economy that they walked into but at least offer an alternate solution. Doing nothing is and was not an option. Agree or disagree these people are working on the problems in front of them and are trying to make improvements. I realize this skit was just an attempt to make light of the situation but it is so exhausting listening to people say it will never work even though it’s only been 6 months…

  Reply
• Burro

  July 16, 2009
  7:59 PM

  solution 1 – lower capital gains taxes – will attract foreign capital, divert capital to private sector and lead to an increase in jobs and investment returns. Works every time.

  Solution 2 – Let failing companies fail. Their assets will be recapitalized into more productive enterprises.

  Solution 3 – overhaul immigration policies to drain the most qualified and innovative employees from other countries whose economies are doing worse than ours. They will buy up the cheap houses, create jobs, and stave off impending demographic problems.

  Solution 4 – the total capitalization of U.S. financial institutions before the crisis was $2.5 trillion. The cost of the crisis so far – almost $2 trillion. We could have built a whole new financial sector from scratch rather than sink assets into failed institutions.

  Solution 5 – Allow greater access to our natural wealth resources rather than restrict this access through stupid policies like cap and trade.

  Boilermaker, identify a historical example where these kinds of stimulus spending programs actually worked.
  .-= Burro´s last blog ..Master of the House: From capitalist empire to medieval fiefdom in 6 months =-.

  Reply
  • Harrison

    July 16, 2009
    8:04 PM

    I think you should run for president! So the first batch of Spending That GW put through you think was a bad idea? Regarding GM I think so… the financial institutions I’m unsure.

    Reply
• Boilermaker

  July 17, 2009
  1:05 PM

  Burro- The only U.S. economic crisis worse than the current one we are in was the “Great Depression”. The “New Deal” : an active, diverse,and innovative program of economic recovery was the solution then and the current stimulus plan is modeled in the same fashion. FDR was criticized by many both in and out of government yet received the overwhelming support of the people, proven by his election for four terms. It didn’t happen overnight then and it won’t know, but we have seen it work before. Give it a chance…

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  • Harrison

    July 17, 2009
    1:10 PM

    Even FDR Treasury Secretary Henry Morgenthau admitted the New Deal had failed. “We are spending more than we have ever spent before and it does not work,” he declared in 1939. “We have never made good on our promises…I say after eight years of this Administration we have just as much unemployment as when we started…And an enormous debt to boot!”

    http://www.freerepublic.com/focus/f-news/2139263/posts

    Reply
• Boilermaker

  July 17, 2009
  1:39 PM

  The rhetoric from Mr. Morgenthau sounds oddly familiar. Just as is the case now, the doubters were very vocal every step of the way but we did work our way out of the depression and were successful in winning the Second World War to boot!

  Reply
  • Harrison

    July 17, 2009
    1:53 PM

    Yes but despite the government programs not because of. And Adolph isn’t available again.

    Reply
• Boilermaker

  July 17, 2009
  2:19 PM

  So the programs and costs are irrelevant anyway? No Adolph, but we do have the two front “War on Terror” ongoing.

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  • Harrison

    July 17, 2009
    3:49 PM

    I think the government spending prolonged things and made them worse by muddying the waters. And Obama cancelled the War on Terror it was too unPC.

    Reply
• Burro

  July 17, 2009
  5:14 PM

  It is debatable, but there is a lot of evidence that suggests that the New Deal prolonged the Depression rather than work to end it. This is why Keynesian economics became entirely unfashionable until Japan had their financial crash in the 1990s. They resorted to government spending solutions, and viola, this resulted in yet one more protracted depression that lasted longer than a decade.

  So we have two major economic crises where massive government spending was implemented as a solution, and they turn out to be two of the lengthiest and most painful economic depressions in modern history.

  Liberal academics who dominate the industry of writing historical textbooks are quick to label the New Deal as a success. It did successfully grow the federal government. It did not successfully end the depression.
  .-= Burro´s last blog ..Want safety from the Democrats? Join Al Qaeda =-.

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• Boilermaker

  July 17, 2009
  6:53 PM

  Debating the hypothetical is a difficult task. To guess what the outcome would have been if no dollars were injected or no programs implemented is just that, a guess. The only thing you can do is look at the action that was taken in a similar situation and what the end result was. It’s up to the individual to decide if all of the action and effort taken was insignificant to the eventual recovery in both situations.

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  • Harrison

    July 17, 2009
    9:40 PM

    We already know the government pushed us into a great depression vs. a recession. I guess we’ll know by 2050 about this one.

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• burro

  July 18, 2009
  11:30 PM

  On the other hand, to guess what the outcome is going to be if we do implement programs and spend trillions of dollars is just that, a guess. Obama guessed that his stimulus package would prevent the unemployment rate from rising above 8%; he guessed wrong. What should we be more troubled by, that he was wrong or that he guessed in the first place? Then Biden goes out and says that they have no clue about pretty much anything that is going on, so it is confirmed, they are pretty much guessing. It’s nice to see that you haphazardly concede that no one that is making these important decisions knows if their ideas will work, it’s also nice to see that you will support this kind of irresponsible behavior, even when all the evidence comes in that your noble leaders didn’t turn out to be so good at guessing.

  I always roll my eyes when people say, “if you don’t study history, you’re doomed to repeat it.” Regardless of whether history is studied or not, history will be repeated, especially as long as people like Boilermaker keep electing people like Obama to positions where they have to make important guesses. (I was going to say “decisions” but that would have been an extremely poor word choice to describe how Obama has chosen to lead us through this crisis.)
  .-= burro´s last blog ..Want safety from the Democrats? Join Al Qaeda =-.

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• Boilermaker

  July 22, 2009
  4:37 PM

  Really Burro??? You still buy into the do nothing and hope it works itself out approach? The verdict is still out on whether this multistage plan will pull us out of this mess. At least you admit this team is trying to fix it. We definitely can say there is no guesswork with your economic beliefs. We know that is exactly how we got into this in the first place.

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