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Widely Cited-Debt Study Exposed

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Posted

There's a time and place for austerity

During times of economic expansion, when policymakers otherwise have no incentive to do so.

Krugman, even for all of his dickishness, will admit this.

or maybe not..

http://www.cnbc.com/id/100558455

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Posted

So if debts don't matter why has the new health care plan been touted as reducing it?

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Posted

Because that's the only way it got passed...

via a lie.

Reconciliation only required 51 votes.

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Posted

If your country can stomach getting all of the pain over with all at once, yeah, austerity can work.

The trouble is, how can the politicians and central bankers justify to the people who are starving/rioting/etc in the meantime.

In America, we're stuck with "simulate prosperity by injecting liquidity into the banks and stock market, and wait around hoping for the real thing to come around" mode.

Can't really say that works either.

Just hire me as the next fed chairman, I'll fix everything.

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Posted

But checkbook and home budget doesn't apply jase. You have to treat the money like it doesn't belong to you so you are like better at budgeting and you can think taxes and revenues are the same.

That's the beauty of politics. You get to convince yourself and others you can't be held accountable for math because its different yo.

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Posted

In the low-rate environment that the fed's created, amount of money borrowed doesn't really matter a whole lot. (for now)

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But any recovery attempt seems to be destined to shoot itself in the foot, because recovery necessitates a return to halfway normal treasury rates. With treasury rates as damn close to zero as possible, just a move to 2000 rates will triple our interest outlays.

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Posted

So if debts don't matter why has the new health care plan been touted as reducing it?

because voters are generally stupid

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Posted

uhh, the government saving money while also improving stuff for citizens is actually a good thing (in theory, that was what the health care stuff was supposed to do :P), as opposed to the government saving money at the expense of citizens at a time when the economy may not be able to sustain that.

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Posted

govt's definition of saving money: Politican A goes, yeah, I voted AGAINST this idea that was proposed for 10 million. Instead I voted for the one that cost only 5 million. Therefore I "saved" you the taxpayer money.

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Posted

uhh, the government saving money while also improving stuff for citizens is actually a good thing (in theory, that was what the health care stuff was supposed to do :P), as opposed to the government saving money at the expense of citizens at a time when the economy may not be able to sustain that.

Good stuff!

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