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The Economic Growth Pipe Dream

Discussion in 'Political Discussion' started by IcyPatriot, Mar 2, 2013.

  1. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    I am so tired of seeing Obama being picked on for slow growth in this country.

    I am so tired of hearing that more growth will solve our budget problems.

    Our country needs to reduce the deficit ... run a tighter ship ... lure companies back to the USA and get used to lower growth numbers in the near and possibly mid range terms.

    http://www.nytimes.com/2013/02/23/b...ped-world-economic-growth-contracts.html?_r=0


    Ahh yes ... we did better not by printing more money ... we did better because the private sector trimmed the fat and recapitalized. Now imagine if Uncle Sam decided to do the same. If the frauds in Congress and the Senate produced real budgets, cut the fat, eliminated redundancy in government jobs. Cut the fat from the top of the military budget ... cut foreign aid and declared a moratorium on pork being part of Congressional bills.

    We would have a tighter, leaner and meaner government that had a much stronger dollar that could purchase more. That purchasing power would expand the markets enough to help compensate for the shrinking of markets elsewhere. As long as we remain fixed on growth as our budget solution we are doomed to failure to improve. I'm not even throwing peak oil in here which is part of the problem in the world wide view.

    We have a government too interested in political power through the magic of printed paper money which has no "0" gold to back it up. I'm not even going to discuss that ... but I could and it's also a huge part of the problem. You cannot create wealth via the printing press ... for every action there are equal reactions elsewhere. Our government need look no further than how much the Germans paid for goods when their government tried the printing the money game.

    Did I mention our huge trade imbalance ... nothing to do with growth right .... wrong :bricks:
    Could you fill a swimming pool that was leaking water faster than a garden hose could replace?

    You can't fix an economy by trying to print more money than what is leaving the country either.
    Last edited: Mar 2, 2013
  2. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    Have to go to some small time newspaper to get good reporting ... but anyways. Good sound financial solutions our government should heed instead of chasing the GDP fixing the budget pipe dream. Trim the budget ... trim the fat ... run the country like a good business in the long term and prop up the system in the short terms as necessary with a stimulus. Short term stimuluses are needed ... we've been on a 10+ year stimulus and it needs to be stopped before it kills the country.

    Sustainable economic growth a contradiction in terms | Herald Scotland

    Last edited: Mar 2, 2013
  3. alvinnf

    alvinnf Rookie

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    While, I tend to agree with all of the above. I think a counter argument could be made for prolonging a steep "world wide" decline by temporarily artificially propping up the economy. Question is, how temporary is this situation and is there a plan in place to gradually stem the tide of deficit spending? Is there anyone in power who seriously wants to conquer this problem. It can't be done without sacrifice, votes or pay checks.
  4. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    Our country has such a huge effect on the global economy that any changes we make ripple around the world. Cutting the budget hurts the global economy which in turn hurts us. But we cannot control what other countries do and at the same time we cannot keep printing money to solve our problem and their problems at the same time. Huge growth is not coming back ... it's not. the entire world needs to trim the fat ... we can only trim ours. Our frauds in DC don't want to do the right thing because they may be voted out ... round and round it goes.
    Last edited: Mar 2, 2013
  5. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

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    #75 Jersey

    Amen to alot of what you say in this thread, Icy. However, you have two whoppers of non-reality amongst the good stuff.

    Your link stated: "That gain is caused entirely by the private sector, which may have benefited from a banking system that did a better job of recapitalizing in 2010 than banks in Europe did, and thus is able to finance more projects."
    ______

    You followed that with "....we did better because the private sector trimmed the fat and recapitalized. Now imagine if Uncle Sam decided to do the same."
    ______

    Well, there are two points that are screaming to be made from what you wrote:

    1) WAAAIIIT a second! The US banking system did that on their own????? Did the biggies (who screwed evrything up inthe first place) NOT get bailed out by the Feds and FORCED (several against their wills) to submit to annual STRESS TESTS??? Methinks you are giving what others here call "The Banksters" a bit too much credit (pardon the pun). Sorry, but no one really is going to fall for "They recapitalized on their own".

    2) The Gov't HAS been belt tightening - - just ask the Congressional Budget Office:

    CBO | Monthly Budget Review

    "The federal government’s fiscal year 2012 has come to a close, and CBO estimates, in the Monthly Budget Review, that the federal budget deficit for the year was about $1.1 trillion, approximately $200 billion lower than the shortfall recorded in 2011. The 2012 deficit was equal to 7.0 percent of gross domestic product, CBO estimates, down from 8.7 percent in 2011, 9.0 percent in 2010, and 10.1 percent in 2009, but greater than in any other year since 1947...."
    ___
    (cue those posters who have no idea about economics or federal budgets who will somehow blame Fiscal Year 2009 (10/15/2008-10/15/2009) on Barack Obama.
    ___

    "......Outlays Were Down by 1.6 Percent in Fiscal Year 2012
    Outlays in fiscal year 2012 totaled $3.5 trillion, $59 billion (or 1.6 percent) less than spending in the same period last year. Excluding adjustments recorded in the budget for the estimated cost of credit programs (mainly the Troubled Asset Relief Program), however, the government’s outlays decreased by 2 percent relative to spending in 2011.

    By CBO's estimates, outlays decreased for several major categories of spending:

    Medicaid—Outlays fell by $24 billion (or 9 percent) because legislated increases in the federal share of the program’s costs expired in July 2011.
    Unemployment benefits—Spending dropped by $30 billion (or 24 percent), mostly because fewer people have been receiving benefits in recent months.
    Defense—Outlays fell by $19 billion (or 3 percent), after adjusting for timing shifts, in part because of lower spending for military operations in Afghanistan and Iraq.
    Education programs—Net outlays were lower by $29 billion (or 30 percent), excluding changes recorded in the budget for the estimated cost of student loans. That decline has occurred largely because of waning spending from funding provided by the American Recovery and Reinvestment Act. (Most of that spending occurred before 2012.)
    For some major programs, spending increased:

    Social Security payments increased by $42 billion (or 6 percent).
    Medicare’s net spending was up by $15 billion (or 3 percent) after adjusting for timing shifts......"

    Note closely: The only two areas of increase in that list are unaviodable due to more people getting older. The discretionaries listed all decreased.
    _________________

    Now - - cue the posters who will try to claim the CBO is run by the Democrats.


    .
    Last edited: Mar 7, 2013

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