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NC_Tigah 
LSU Fan
Member since Sep 2003
40141 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 11:35 am to LSURussian)
quote:
You can't cure stupid, NC_.
Cure?
Heck, I'd be satisfied to even provide palliative care.
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63208 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 11:35 am to NC_Tigah)
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Duke 
New Orleans Saints Fan
Gonzales, La
Member since Jan 2008
13517 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 11:40 am to NC_Tigah)
quote:
Good God Almighty!
The government isn't the real debt problem though. Total debt to gdp is around 350%. 100% of that is coming from the government. Private debt is the debt we need to be focused on. Low demand for labor has wages stagnant, but people still have to pay the bills.
Causing a recession takes away the income needed to repay. Of course doing the cuts over a long period of time can be done and should be done. Households need time however to work down their debt.
Though I'll admit, there's something to be said for learning your lesson.
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Willie Stroker
LSU Fan
Houston...ish
Member since Sep 2008
4321 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 12:11 pm to Duke)
quote:
100% of that is coming from the government.
Now keep going...
Where does the government get that 100% FROM?
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Duke
New Orleans Saints Fan
Gonzales, La
Member since Jan 2008
13517 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 12:16 pm to Willie Stroker)
quote:
Where does the government get that 100% FROM?
A cut of the GDP.
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Willie Stroker
LSU Fan
Houston...ish
Member since Sep 2008
4321 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 12:17 pm to Duke)
quote:
When that spending cut will also cut your income, you're just treading water.
So you're under the impression that if the government stops taking more from the most productive sectors of the economy in order to pay for more less productive things with money we don't have....that the economy will get worse?
Please explain.
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Willie Stroker
LSU Fan
Houston...ish
Member since Sep 2008
4321 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 12:20 pm to Duke)
quote:
A cut of the GDP.
I'm not sure we're on the same page here. Perhaps I'm misunderstanding the point you're trying to make, but what productive value does government spending represent when the government takes MORE OUT of the productive sectors of the economy in order to advance the unproductive shell game of taking a larger share of GDP?
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WildTchoupitoulas
Member since Jan 2010
10677 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 12:24 pm to Zach)
quote:
Japan made a serious economic improvement with austerity measures. But I can't remember the time frame.
That was during their urban renewal campaign in 1944-45.
Americans help with Japanese Austerity plan:
Americans targeting Japanese government waste:
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Duke
New Orleans Saints Fan
Gonzales, La
Member since Jan 2008
13517 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 2:14 pm to Willie Stroker)
quote:
So you're under the impression that if the government stops taking more from the most productive sectors of the economy in order to pay for more less productive things with money we don't have....that the economy will get worse?
No. The tax hikes/spending cuts that go along with these austerity packages country after country in Europe have been rolling out.
I'm talking about taking less from the more productive sectors and using money we don't have yet to pay for a stimulus. So lower business taxes coupled with spending on infrastructure and education reform (i mean, if there was a chance in hell we'd do it right) to help the economy grow long term.
Then you cut spending as things start growing and also raise income taxes.
This post was edited on 12/7 at 2:23 pm
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bamafan1001 
Alabama Fan
Member since Jun 2011
623 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 3:03 pm to Duke)
quote:
No. The tax hikes/spending cuts that go along with these austerity packages country after country in Europe have been rolling out. I'm talking about taking less from the more productive sectors and using money we don't have yet to pay for a stimulus. So lower business taxes coupled with spending on infrastructure and education reform (i mean, if there was a chance in hell we'd do it right) to help the economy grow long term. Then you cut spending as things start growing and also raise income taxes.
The last "stimulus" was supposed to do these things. Why should the American people support another stimulus with the same people in charge when the first one was a sham?
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90proofprofessional
LSU Fan
Member since Mar 2004
6135 posts
 Online
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 3:39 pm to Duke)
quote:
What can they do? There's seems no way out but default or bondholders taking a haircut
So eventual, unavoidable austerity is certain by nature of the situation, even though austerity as a policy "doesn't work"?Intredasting.
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Willie Stroker
LSU Fan
Houston...ish
Member since Sep 2008
4321 posts
| re: Do Austerity Economics Work? (Posted on 12/7/12 at 4:23 pm to Duke)
quote:
I'm talking about taking less from the more productive sectors and using money we don't have yet to pay for a stimulus.
So you're advocating lowering business taxes and increasing government spending with money we don't have? If so, where does that money we don't have come from? Are you advocating that we print more to create a hidden "tax" of inflation that raises living costs for everyone including the middle class and poor? Or are you advocating more future debt like our Prez?
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