gamert7Join Date: 2008-11-18
Post Count: 4986 |
I said the only reason the people lost their job is because, the stimulated economy sent companies false signals i did say that.
Do you know how the great depression started? Because, of government intervention.
They can not let the economy fix it's own mistakes.
People do lose their jobs during a recession why? Because, the economy is fixing the mistakes made by government stimulus. A recession would happen it always has to to fix errors. But, the government interfering makes it much worse. Like the Housing Bubble, the Crash of 08, The Great depression, The Depression of 1920 and etc.
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
Because, the economy is fixing the mistakes made by government stimulus. It also has to deal with a number of other things like keeping the interest rate to low. Guaranteeing mortgages. But 95% of the time, a recession would not happen if the government let the economy flow. |
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@Rene That is a crash not a recession. A recession is painful but, corrects the mistakes made during a boom. The recession is the way that the market corrects imbalances such as living beyond your means.
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economic boom = goverment gets money!
recession = goverment looses money!
You are assaulting common sense. |
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
@MeGusta
Your insulting common sense. During a economic boom people live beyond their means. They get jobs they never would have gotten. Invest in things they never would have invested in. Get mortgages they can not afford. A recession corrects those mistakes. Our mistakes like our insanly low interest rates. To much stimulus. Etc etc think about what people do during a boom before you make such a rhetoric comment. |
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But there is no need to go uselessly into a recession when you have a boom. |
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
When you use stimulus to go into that boom there is. You do not choose to go into the boom. Eventually the market forces you. |
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Overheated economies push up PL, resource prices increase , and short run aggregate supply is driven back down until the economy returns to equilibrium at a higher price level. Unless we're willing to engage in contractionary monetary policy at that point (which the Fed is always reluctant to do) it would be more practical to employ Keynesian measures. |
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When you use stimulus to go into that boom there is. You do not choose to go into the boom. Eventually the market forces you.
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What. |
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I think he's saying how in the short run you can run an economy past equilibrium with sufficient government spending to kick out AD. |
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Also, what if there is a monopoly? When there is a monopoly, the prices tend to go up badly and it will stay like that for years because competition has no way to promote their products, unless the promotor is super rich for some reason or unless another company expands to a different product, which however increases the chance of megamonopolies, where a single company would dominate in many product types at once. At such a time, stimulus is good because it promotes the dominated countries and forces the other company, who got the monopoly, to compete with the stimuled company and thus the prices will fall and everything is as it should be even by your ideas.
You keep talking here about how stimulus is evil and bad but you completely forgot that monopolies can potentially exist. |
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I'm not sure if your hypothetical economy is missing fluid capital markets or something, uganda. |
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I think he's saying how in the short run you can run an economy past equilibrium with sufficient government spending to kick out AD.
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I think he said "Let's run past fiscal cliffs and the invisible hand of free market will take care of the rest".
And I would disagree, as much as you can avoid cliffs without having to raise taxes significanrly, just avoid it, there's no need for companies to fire their employees every 4 years. |
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The free market regards lower government spending and higher taxes as fiscal policies designed to contract the economy, haha. We can take it, but it ain't gon' be purty... |
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I thought free marketers want less taxes and more spending...
No seriously, you tax the rich, they go to tax heavens.
You tax the middle, they go poor.
You tax the poor, they get even poorer.
I think we should both cut spending and raise taxes at the same time.
Also, to what economical system to you assign yourself to? |
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Nope, cut spending and keep taxes low. |
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But what if you cut spending too much?
I mean, military surely needs to be cut, it's useless to spend so much money on it, but what if you have to simply cut way too much?
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Government's job is to protect life liberty and property. If the government protects that then it's job is complete.
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But what if the goverment undergoes a heavy recession? There needs to be some sort of a solution, and cutting spending sometimes isn't enough, and letting the invisible hand of free market might take too long, what then? |
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
"But what if the goverment undergoes a heavy recession? There needs to be some sort of a solution, and cutting spending sometimes isn't enough, and letting the invisible hand of free market might take too long, what then?"
You do not understand that the recession is the solution.
"After that the crash of 1920 happened we had a bust. At first we had the boom because, of this fake wealth created by the Federal Reserve. Then we had the bust.
Stock rates crashed 400% our GDP crashed 12% and unemployment shot up from 4% to 12%. Now President Warren G. Harding understood what happened so he cut government spending. Despite the of United States Secretary of Commerce Herbert Hover. He thought that this was terrible we need stimulus.
Now remember Stock rates crashed 400% our GDP crashed 12% and unemployment shot up from 4% to 12% and he did nothing. What was the result? During the first year of doing nothing unemployment got slashed in half to 6%. The second year it got slashed again below 3% and the economy completely recovered. Not only completely recovered but, also got better."
Warren G. Harding did nothing the economy got better in 2 years rather then your 12 years. So, if anything moved slowly in fixing anything it was the government.
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
Also what i meant was this.
You can use your stimulus and let the people live beyond their means for a while. But, eventually the market either kills your economy or forces you into a depression then a recession. The longer you hold it off the harder the recession will have to be. |
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You do not understand that the recession is the solution.
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Good, we should watch as companies fire their workers! It is a solution to a non-existant crisis!
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Stock rates crashed 400% our GDP crashed 12% and unemployment shot up from 4% to 12%. Now President Warren G. Harding understood what happened so he cut government spending. Despite the of United States Secretary of Commerce Herbert Hover. He thought that this was terrible we need stimulus.
Now remember Stock rates crashed 400% our GDP crashed 12% and unemployment shot up from 4% to 12% and he did nothing. What was the result? During the first year of doing nothing unemployment got slashed in half to 6%. The second year it got slashed again below 3% and the economy completely recovered. Not only completely recovered but, also got better."
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Obama did absolutely nothing except for issuing obamacare.
Did it help the economy? Nope.
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Warren G. Harding did nothing the economy got better in 2 years rather then your 12 years. So, if anything moved slowly in fixing anything it was the government.
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Once again, did Obama improve the economy by doing nothing? Nope.
So there goes your argument. |
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@megusta remember the stimulus packages? |
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
"You do not understand that the recession is the solution.
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Good, we should watch as companies fire their workers! It is a solution to a non-existant crisis!"
If it is non existent then, why are you debating on it? Why is the government issuing a open ended QE? You make no sense.
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"Obama did absolutely nothing except for issuing obamacare.
Did it help the economy? Nope."
LOL 08 Bailout, QE2 and QE3 do you pay attention?
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"Warren G. Harding did nothing the economy got better in 2 years rather then your 12 years. So, if anything moved slowly in fixing anything it was the government.
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Once again, did Obama improve the economy by doing nothing? Nope.
So there goes your argument."
Again, obama did effect the economy and with QE2 the economy did get better now we have QE3 but, the difference is the creditors are waking up. |
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gamert7Join Date: 2008-11-18
Post Count: 4986 |
Listen i do not like obama i dislike him a lot actually. But, he has done a lot has he helped much? No, but he has done a lot of executive orders and the NDAA act. |
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