Lost in the Ridiculous Debt Ceiling Debate

[zengrifter]

Originally Posted by tthree

The thing that really gets me. When Obama was elected the economy had tanked so the only thing to do was trim government to the size of the declining revenue. Obama and the Dems in control of everything doubled the size of government instead.

As did his repugnicrat predecessor.

Remember, no matter which side you vote, the flight plan doesn't change. zg

[zengrifter]

Originally Posted by moo321

If America ever does collapse, it will probably be as a result of financial mismanagement. No one can defeat us in a conventional war, but we can ruin ourselves like the British, the Romans, and many other great civilizations.

Not "many", ALL. zg

[moo321]

I also think that the widespread acceptance of Keynesian principles by both parties is to blame. Both sides believe that there is a "balanced budget multiplier" such that if the government spends money, it will create economic growth.

Unfortunately, this balanced budget multiplier has been studied and shown to be around 1 or less, not 1/tax rate as assumed by Keynes. For example, they believe that if there is a 20% tax rate, each dollar the government spends will create $5 in growth. But this is demonstrably not true. In summary, the whole theory is crap, and government "stimulus" actually slows economic growth.

[tthree]

There are really people out that that believe that Keynesian crap. I thought it was an excuse in a con to misappropriate our money. That stuff has been proven wrong so many times I didn't think anyone actually believed it.

[zengrifter]

Originally Posted by tthree

There are really people out that that believe that Keynesian crap. I thought it was an excuse in a con to misappropriate our money. That stuff has been proven wrong so many times I didn't think anyone actually believed it.

Nor the "trickle-down" voodoo. zg

[moo321]

Originally Posted by tthree

There are really people out that that believe that Keynesian crap. I thought it was an excuse in a con to misappropriate our money. That stuff has been proven wrong so many times I didn't think anyone actually believed it.

It's very much part of "mainstream" economics. I had to learn all about it in college, in spite of it being total crap, and most politicians seem to believe it.

[zengrifter]

Larouche has always said that what is needed is to put the US into an orderly BK-reorg, establish an America-owned central bank along the example of Alexander Hamilton, invest in big projects, like national hi-speed rail lines and space and canals for water from the north, and lead the other big nations into a "New Bretton-Woods" financial treaty. zg