Crash of 2011 Could Come as Early as Next Week!

[zengrifter]

Originally Posted by Machinist

Careful AM!!!!!! Qfit will pull the "ignore" cord on ya, just like me and Tthree....
Tread lightly.

Machinist

How can I tell if someone is ignoring me? zg

[aslan]

Originally Posted by Automatic Monkey

The fallacy behind it is that the government needs to take it from the private sector, preventing the private sector from spending the money, in order to spend it themselves.

This is a problem because when the private sector spends money, we want maximum value for it based on our own perceptions and desire to increase our wealth in the future. E.g. when construction worker buys a new truck, he wants a truck that is reliable, powerful, and as efficient as can be and still do the job because he doesn't want to pay out all his money for fuel. He also wants to pay as little as possible for it. So this guy is putting pressure on the truck manufacturers to design and build a high quality and affordable product, he hands the dealer a check for the purchase price and drives away.

When the government buys trucks, the first thing they do is pay for some studies. And now they need it to be a "green" truck that won't hurt the fishies and the birdies. And then there are diversity considerations- does the dealer hire enough Biafran midget lesbians in wheelchairs? Finally there's the big one- everybody in government has their political patrons and that's who is going to get the business. Note none of this has anything to do with the quality or the price of a truck. What does the congressman care about that? He rides in a limo, not a truck. This is why money spent by the government is not multiplied- money spent by people and companies who have to live with the consequences of their spending decisions is.

Makes sense.

[aslan]

Originally Posted by Xenophon

The debate between classical "Laissez-faire" or, "let it be" economics and Keynesian economics is far from over.

There are still staunch proponents of both schools of thought, and also of course moderate economists that believe that depending on the situation a combination of both or either individually could be warranted.

Neither theory has been proven nor disproven. This is mainly because no set of circumstances is exactly the same when policy is set. For example, during the financial crises there were proponents and opponents for the bank bailouts.

We cannot have a controlled study of "what happens without a bailout," and what has happened due to the bailouts. Therefor we can't really compare the two decisions fairly.

There was heated debate over if we should have a stimulus (Keynesian) and how big it should be, during the last recession.

All you need to know about classical (similarly Austrian economics) and Keynesian is completely covered in the music video via the link below.

http://econstories.tv/2011/04/28/fig...y-music-video/

Bravo! Sounded like a recapitulation of the Forum. We could have saved a lot of time and just played the video.

[Thunder]

Originally Posted by zengrifter

How can I tell if someone is ignoring me? zg

Simple.. If you hear the sound of deafening silence around you.

[zengrifter]

Originally Posted by Thunder

Simple.. If you hear the sound of deafening silence around you.

It does seem quieter then it used to be. zg

[QFIT]

Unfortunately, the TP lies about the current admin efforts. The Obama admin saved the auto industry. The current admin wishes to invest in our country's crumbling infrastructure. This is not make-work projects or simply tossing money around. The are blocked at every avenue. The current admin tried to pass a health plan that would remove the onerous task of providing health care from business, so they could compete on a more even playing field with foreign corporations, none of which have to deal with health care. The TP simply wishes to "blame and punish foreigners" for the problems of our businesses instead of bringing our infrastructure and health care system up to modern standards.

[aslan]

Originally Posted by zengrifter

It does seem quieter then it used to be. zg

That is the sound of one hand clapping.

[aslan]

Originally Posted by zengrifter

How can I tell if someone is ignoring me? zg

Easy. Ask everyone on the Forum to please send you a PM. Whoever does not respond is ignoring you!

[zengrifter]

Originally Posted by QFIT

The Obama admin saved the auto industry.

Saved US auto from what??
From crooked mega banks and Wall Street?
And then saved those too? zg

[QFIT]

Originally Posted by zengrifter

Saved US auto from what??
From crooked mega banks and Wall Street?
And then saved those too? zg

He saved them from their own short-sited stupidity.

You're confusing Obama with Bush.