Government's Role in Recession

[Superman]

Let's see how well some of you folks understand history.

POP especially. POP, I wonder if you think this would be a good time to slash gubmit revenues, and lay off hundreds of thousands of gubmit workers. Here's a hint: Government spending is a time-honored and reliably effective way of stimulating the economy. Increased unemployment might not be the best part of an economic stimulus package.

It looks to me like your government has indeed let you down. Not by levying taxes, but by not being there for you when you are going to need it the most. We're screwed. No safety net.

[daepp]

What the hell is POP?

[Dantilla]

Originally Posted by Superman

Government spending is a time-honored and reliably effective way of stimulating the economy.

Very true. Just ask the Russian people who were filled with joy during the cold war.

[Superman]

It got us out of the Great Depression, Dan.

[71T Targa]

Originally Posted by daepp

What the hell is POP?

A Porsche-O-Phile?

[daepp]

Read Amity Shlaes' "The Forgotten Man". She make a pretty good case as to why all of FDR's moves prolonged the Depression.

[The Gaijin]

Supe-Man: You represent a "Special Interest". And Hillary tells me you are bad.

[Superman]

Originally Posted by daepp

Read Amity Shlaes' "The Forgotten Man". She make a pretty good case as to why all of FDR's moves prolonged the Depression.

Okay, then maybe it would be helpful if we stop awarding contracts for roads and bridges, and lay off a few hundred thousand gubmit workers. Good for the economy. Perhaps that will cause economic growth. We're certainly positioned nicely to implement this tactic.

[Hugh R]

How the heII does taxing me $100, giving a worker $10, giving his pension and healthcare program $8, not paying into social security, and pissing away the other $82 turn out to stimulate the economy in a recession?

I've been calling the California Department of Health Services, Radiological Health Branch to get invoices for our security x-ray machine renewals for two weeks and no one can be bothered returning my phone calls.

[s_wilwerding]

Wow, just wow. Government spending did not get us out of the Great Depression, WWII did. Also, it was because of government that the Depression was as bad as it was.

Government spending can briefly stimulate the economy, but in the long run, it causes far more problems in the economy that it solves.

[legion]

Originally Posted by Superman

It got us out of the Great Depression, Dan.

WRONG!

That was WWII.

[jyl]

POP has previously posted that the best economic stimulus would be for 2007 income taxes to be made zero and 2008 federal spending to be "frozen".

I like to think that POP posts things like that without thinking. If he thought them through and yet still posted them, that would be unfortunate.

[stevepaa]

Originally Posted by s_wilwerding

Wow, just wow. Government spending did not get us out of the Great Depression, WWII did. Also, it was because of government that the Depression was as bad as it was.

Government spending can briefly stimulate the economy, but in the long run, it causes far more problems in the economy that it solves.

was as bad as it was. hum nothing there to suggest that

[Porsche-O-Phile]

Fine, I'll answer the call.

Yes, if I were elected president, I'd implement a 50% cut in ALL government budgets - across the board. Right from Day #1.

The best way to solve the underlying problems that create a recession or depression is to let the free market work its magic and correct itself. But of course I'm sure the concept of that is lost on a gubmint bureaucrat as part of the brain-erasing sessions they give you as part of training.

The more government gets involved, the worse things will get. Guaranteed.

I actually agree to a point with Congress and GWB (did I actually just agree with Bush?) that the best way to offset a recession is to give people back their own money. The only problems I see with the so-called "stimulus package" are that (1) it doesn't represent enough $$$ per household to be significant and (2) it excludes the wealthy, who represent the drivers of the consumer economy.

You give people notice and phase the cuts in over time, but you make the cuts. This way they can learn to be productive members of society, entepreneurs, employees and go-getters instead of do-nothing government bureaucrats.

There, is that what you wanted to hear?

[jyl]

Cutting federal govt budget 50% means either you wipe out social security and medicare - or you eliminate essentially entire federal government, military included - or you default on the national debt.

In fantasy-land, sure. But we live in the real world.

[Porsche-O-Phile]

SS & medicare should be cut off effective tomorrow. As in, those who have paid in get out what they paid in, but no more withholding for it starting tomorrow. Effectively, end the program. It's doomed to failure anyway.

Military is provided for by the Constitution and should arguably be the largest slice of the federal government budget pie. Most of the other "functions" are up to the states, and should be up to them whether to continue or let them drop.

[s_wilwerding]

Originally Posted by stevepaa

was as bad as it was. hum nothing there to suggest that

Try this link.

[Mo_Gearhead]

So what's the Man of Steel's opinion on the newest Gubment handout?

$300-$600 checks randomly tossed into the crowd.

Golly good show?
or
More pabulum to somehow calm the unwashed masses?

[hytem]

I understand the big handout didn't get through the Senate today.

[jyl]

Sorry, what you propose is not possible.

Social security is a so-called "pay as you go" system. Payments to today's retirees are funded by withholdings from today's workers.

Thus if you cut off withholding for SS, you immediately cut off benefits.

(In the real world, that is.)

Originally Posted by Porsche-O-Phile

SS & medicare should be cut off effective tomorrow. As in, those who have paid in get out what they paid in, but no more withholding for it starting tomorrow. Effectively, end the program. It's doomed to failure anyway.