Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." And the New Deal, which the president's supporters are so quick to point to?
Here are the thoughts of Henry Morgenthau, FDR's Treasury Secretary : "We have tried spending money. We are spending more than we have ever spent before and it does not work. ... I say after eight years of this administration we have just as much unemployment as when we started ... And an enormous debt to boot!"
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Originally posted by Gordon Gekko II:
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." Not true, though that is the popular belief. There was an in-depth analysis of this by Adam Posen who argues Japan did not implement enough stimulus to offset the loss of economic momentum, mainly because of political will.
Gov't stimulus funds were allocated to be spent by local/ regional municipalites - and most of those funds went unspent (a very different culture than the US). And, what little was implemented, was insufficient to even offset the loss of prviate economic activity, much less be a growth stimulus.
And there are many instances in which gov't stimulus has shortened downturns. What really is needed are spending increases during downturns, then cutbacks into economic strength. Though our govt has trouble with part II.
[ February 13, 2009, 11:10 AM: Message edited by: KJ Duke ]
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." Not true, though that is the popular belief. There was an in-depth analysis of this by Adam Posen who argues Japan did not implement enough stimulus to offset the loss of economic momentum, mainly because of political will.
Gov't stimulus funds were allocated to be spent by local/ regional municipalites - and most of those funds went unspent (a very different culture than the US). And, what little was implemented, was insufficient to even offset the loss of prviate economic activity, much less be a growth stimulus.
And there are many instances in which gov't stimulus has shortened downturns. What really is needed are spending increases during downturns, then cutbacks into economic strength. Though our govt has trouble with part II.
[ February 13, 2009, 11:10 AM: Message edited by: KJ Duke ]
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Chest Rockwell
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Originally posted by Gordon Gekko II:
“Even if you don’t lose your job you’re less likely to go out and spend, because you’re more likely to be worried about your job,” said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina. “Job cuts are going to continue right into 2010.”
with consumers not going to bring the economy back, the government is trying to substitute its spending in place of the consumers to prop up a PRETEND economy. once the government is bankrupt (i think they are already), the US will have no more bullets to fire and will be DEAD BROKE.
A government run society / police state of some sort is getting closer each day. so is "V for Vendetta" GG I am hearing Vitner speak next Thursday. I will let him know you are quoting him on these boards. Bright guy!
“Even if you don’t lose your job you’re less likely to go out and spend, because you’re more likely to be worried about your job,” said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina. “Job cuts are going to continue right into 2010.”
with consumers not going to bring the economy back, the government is trying to substitute its spending in place of the consumers to prop up a PRETEND economy. once the government is bankrupt (i think they are already), the US will have no more bullets to fire and will be DEAD BROKE.
A government run society / police state of some sort is getting closer each day. so is "V for Vendetta" GG I am hearing Vitner speak next Thursday. I will let him know you are quoting him on these boards. Bright guy!
Stock Market
Originally posted by Gordon Gekko II:
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." And the New Deal, which the president's supporters are so quick to point to?
Here are the thoughts of Henry Morgenthau, FDR's Treasury Secretary : "We have tried spending money. We are spending more than we have ever spent before and it does not work. ... I say after eight years of this administration we have just as much unemployment as when we started ... And an enormous debt to boot!" I know me and Mark dont agree on some things but i would say he is right on with this and some of his other posts in this thread.
The Socalist element in this country has gotton too much of a foothold in this country so you better hold on cause this ride could get ugly.
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." And the New Deal, which the president's supporters are so quick to point to?
Here are the thoughts of Henry Morgenthau, FDR's Treasury Secretary : "We have tried spending money. We are spending more than we have ever spent before and it does not work. ... I say after eight years of this administration we have just as much unemployment as when we started ... And an enormous debt to boot!" I know me and Mark dont agree on some things but i would say he is right on with this and some of his other posts in this thread.
The Socalist element in this country has gotton too much of a foothold in this country so you better hold on cause this ride could get ugly.
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sportsbettingman
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Originally posted by KJ Duke:
quote:Originally posted by Gordon Gekko II:
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." Not true, though that is the popular belief. There was an in-depth analysis of this by Adam Posen who argues Japan did not implement enough stimulus to offset the loss of economic momentum, mainly because of political will.
Gov't stimulus funds were allocated to be spent by local/ regional municipalites - and most of those funds went unspent (a very different culture than the US). And, what little was implemented, was insufficient to even offset the loss of prviate economic activity, much less be a growth stimulus.
And there are many instances in which gov't stimulus has shortened downturns. What really is needed are spending increases during downturns, then cutbacks into economic strength. Though our govt has trouble with part II. [/QUOTE]Will that excuse be in play here as well, should all the stimulus packages fail?
~Lance
quote:Originally posted by Gordon Gekko II:
Finally, history shows us quite clearly that a government cannot spend its way out of an economic downturn. It didn't work in Japan in the 1990s, when the 10 stimulus packages implemented over an eight year period failed to prevent the "lost decade." Not true, though that is the popular belief. There was an in-depth analysis of this by Adam Posen who argues Japan did not implement enough stimulus to offset the loss of economic momentum, mainly because of political will.
Gov't stimulus funds were allocated to be spent by local/ regional municipalites - and most of those funds went unspent (a very different culture than the US). And, what little was implemented, was insufficient to even offset the loss of prviate economic activity, much less be a growth stimulus.
And there are many instances in which gov't stimulus has shortened downturns. What really is needed are spending increases during downturns, then cutbacks into economic strength. Though our govt has trouble with part II. [/QUOTE]Will that excuse be in play here as well, should all the stimulus packages fail?
~Lance
"The only reason for time is so that everything doesn't happen at once."
~Albert Einstein
~Albert Einstein
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Originally posted by sportsbettingman:
Will that excuse be in play here as well, should all the stimulus packages fail?
~Lance No Lance, unlike the Japanese, our govt officials love to spend money. Obama will keep on spending just like George kept on fighting.
[ February 14, 2009, 12:57 PM: Message edited by: KJ Duke ]
Will that excuse be in play here as well, should all the stimulus packages fail?
~Lance No Lance, unlike the Japanese, our govt officials love to spend money. Obama will keep on spending just like George kept on fighting.
[ February 14, 2009, 12:57 PM: Message edited by: KJ Duke ]
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Gordon Gekko II
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SACRAMENTO, Calif. – After a frustrating holiday weekend that failed to yield the one vote needed to end California's budget stalemate, the state is poised to begin layoff proceedings Tuesday for 20,000 government workers.
In addition to the layoffs, the state also plans to halt all remaining public works projects, potentially putting thousands of construction workers out of jobs.
In addition to the layoffs, the state also plans to halt all remaining public works projects, potentially putting thousands of construction workers out of jobs.