As Predicted, Austerity Policies Send US Economy Downward

[Mr. Big Dog 10,747]

There is your problem right there -- have you priced a men's suit lately?

I don't think these suits were bought during the depression. Seems to me these were leftovers from the years prior?

[Dan and Judy 614]

I would think trimming spending when you are in a cash flow crisis would be smart. Somehow in your twisted liberal logic, I guess if you find yourself unemployed , it's time to order the deluxe Direct TV package, buy a new car, order top tier internet service, eat at a five star restaurant every night.

Most normal humans would think when times are bad it's time to tighten the belt.

First let me agree with you 100% in a single household if you have a cash flow crisis drastic spending cuts are in order.

we do agree on something.

also let me compliment you on your ability to make a simple argument. You have "Dog" beat hands down in that department.

[Mr. Big Dog 10,747]

also let me compliment you on your ability to make a simple argument. You have "Dog" beat hands down in that department.

Really? When confronted with simple facts, he failed to understand basic terminology and mistook the debt to GDP ratio for a debt service to revenue ratio. Now that might convince you but that still doesn't make it a win. At least not in the real word. But hey, whatever floats that little boat.

[I AM NOT THAT GUY 5,715]

I don't think these suits were bought during the depression. Seems to me these were leftovers from the years prior?

My parents went through the depression as kids. My dad didn't notice much difference, as they didn't have much to begin with. They had a small truck farm in panhandle Texas. They always had plenty to eat, but did without a lot of store bought goods during the depression. My mom's family did fairly well during the 20's, and when the depression hit, they began selling stuff to survive. The tires on the family car were the first things to be sold, when they didn't had the money to put fuel in the tank. Everybody expected the depression to be over quickly, a few months at the longest, so they were reluctant to sell anything they expected to need later. What a surprise that it lasted nearly two decades. The GI bill was the shot in the arm of the economy that really got the country moving, putting servicemen back in school, and offering them low cost mortgages, that helped private industry recover in the years following the war.

[Dan and Judy 614]

Really? When confronted with simple facts, he failed to understand basic terminology and mistook the debt to GDP ratio for a debt service to revenue ratio. Now that might convince you but that still doesn't make it a win. At least not in the real word. But hey, whatever floats that little boat.

It's possible for a very smart Doctor to explain to a patient that her tumor is category 2, benign and have the patient leave scared to death. Or for a Doctor to tell a patient they have gastro esophageal reflux and assume the patient knows what that is. It's basic terminology for the doctor, not the patient.

[Mr. Big Dog 10,747]

It's possible for a very smart Doctor to explain to a patient that her tumor is category 2, benign and have the patient leave scared to death. Or for a Doctor to tell a patient they have gastro esophageal reflux and assume the patient knows what that is. It's basic terminology for the doctor, not the patient.

Yes but in this sample, the dopctor at least keeps the basic concept right. That is where our friend from Georgia fails. He really, truly doesn't grasp that there is such a thing as a sustainable deficit - i.e. a situation where a government perpetually spends more than it collects and yet never actually breaks the bank, so to speak. It's a simple concept that anyone with basic math skills can validate.

[Dan and Judy 614]

I would like to take a stab at the difference between a single household and a National economy.

I will start by stating my qualifications:

I passed high school economics some time in the 70's

I read a book about money and banks about 10 years ago

that's about it

Starting at the beginning

Everybody had to do everything for themselves

pick their own berries and build their own chairs, catch their own fish

clean their own toilets.......everything

It soon became evident that some guys were better fishermen

and some were better farmers

women were better at cleaning toilets and doing laundry

hence specialization was born

fishermen fished all day long and farmers farmed from sun up to sun set it was more efficient.

but the farmer wanted to eat some tuna and the fisher had a hankering for corn

before there was money, if you wanted something that someone else had you would offer

to trade them something you had (a product) or a service. if you didn't have anything they wanted

you could just kill them and take all their stuff

somebody invented armies to make it easier to take other peoples stuff

then somebody else invented an army to keep other armies from taking all their stuff

Too many people were dying like that so John Currency invented money, being rather egotistical

he named it after himself.

Money makes trading easier

without money a farmer who didn't like the taste of fish would not trade with a fisherman because

the fisherman didn't have what the farmer wanted

The brickmaker liked fish but he didn't have any corn which is what the fisherman wanted.

Once money was invented if you had or did something of value you could sell it for money

and then take your money and go buy whatever you wanted

So Money makes trading easier. To an economy Money is like oil for a car, it reduces friction between the buyer

and the seller and keeps things flowing smoothly

I believe salt (sal) was a currency used by the romans to pay their soldiers, hence the word salary.

On some islands seashells were used.

The hard part was getting people to agree on what was acceptable to be used as money.

So we invented governments

Governments decided gold and silver made the best money

Then some English liberal bozo named John Locke came along

He was related to John Currency through a long line of Johns

Anyway He thought there should be a law of supply and demand

He got parliment to pass it and we've been stuck with it ever since

Ok so I have not said a word about the difference between a single household and a national economy.

I'm afraid that won't come until the next chapter which I will probably call "Supply and Demand"

[Nina~ 431]

It soon became evident that some guys were better fishermen

and some were better farmers

women were better at cleaning toilets and doing laundry

hence specialization was born

[Teddy B 17,252]

It soon became evident that some guys were better fishermen

and some were better farmers

women were better at cleaning toilets and doing laundry

hence specialization was born

Wait til the CABA chicks catch wind of this! You better run for the hills dude!

[I AM NOT THAT GUY 5,715]

Wait til the CABA chicks catch wind of this! You better run for the hills dude!

Coulda, or shoulda, doesn't mean woulda.

[one...two...tree 2,762]

A better comparison would be like running a business.

A business starting out must spend a lot of money up front before it will ever see a return on its investment, and while it is possible that a business could spend itself out of business, most often, it's a lack of revenue that causes them to go bankrupt. And a lot of times, a business that is too cautious to spend money on advertisement, staff, and infrastructure, will fail to bring in new revenue.

Keynesian Economics on a small scale. It not only works - it is the standard protocol.

[Karee 4,190]

A better comparison would be like running a business.

A business starting out must spend a lot of money up front before it will ever see a return on its investment, and while it is possible that a business could spend itself out of business, most often, it's a lack of revenue that causes them to go bankrupt. And a lot of times, a business that is too cautious to spend money on advertisement, staff, and infrastructure, will fail to bring in new revenue.

Keynesian Economics on a small scale. It not only works - it is the standard protocol.

Most businesses do not have guaranteed revenue.

[one...two...tree 2,762]

Most businesses do not have guaranteed revenue.

That's a big assumption that for one, Federal income tax revenue is guaranteed (by whom?) and for how much? If 40 million people are jobless, the fed collects nothing from them.

Take a business like an independent restaurant, for example. If the location is in a good spot (high traffic) and the food is good, they'll have a steady supply of patrons. However, it's not simply about revenue, but bringing in enough revenue to keep the business afloat, and if that restaurant doesn't spend money on keeping the place clean and presentable, or doesn't bother to hire a decent cook, chances are, they're not going to see their sales go up.

Business fundamentals 101.

Edited February 5, 2013 by Lincolns mullet

[I AM NOT THAT GUY 5,715]

Business fundamentals 101.

How many years have you owned your own business?

[natty bumppo 297]

I would like to take a stab at the difference between a single household and a National economy.

I will start by stating my qualifications:

I passed high school economics some time in the 70's

I read a book about money and banks about 10 years ago

that's about it

Starting at the beginning ...

if you want real credibility ... consider stating you "slept at a holiday inn express last night"