Democrats are the one marshmallow party

[Sava]

If we are in a liquidity trap, wouldn't it still be reasonable to believe that at some point we won't be and encouraging people to save will lead to more investment?

It's not that simple... which is probably why we are in the trap. If you raise rates to make saving worthwhile for consumers, consumers will spend less and the economy will get worse.

The only solution to this is taxing the top. There's enough supply. We need demand. If private individuals and companies don't want to risk hiring people, the government needs to.

Then, it becomes about how best to spend the money... infrastructure? Clean energy?

If I were in charge, I'd hire google to criss cross the nation with that 100+ mb/s internet they are experimenting with in certain cities. I'd hire companies to build electrical infrastructure... so called "smart grid"... and high voltage, long distance transmission lines. I'd do some high speed rail.

The good thing about that type of spending is that it creates jobs domestically... and provides massive payoffs to the consumer economy. Also, it helps alleviate some of the reliance on fossil fuels.

Unfortunately, there are powerful industries who wouldn't benefit from such investment... thus the opposition. Also, taxes on the top isn't popular with the top because it's short term loss versus long term gains.

Also, I'd do things like legalize and tax drugs so that we can turn net losses into net revenues. That's a no brainer... and is slowly happening across the states.

Reducing expensive military involvements should be a priority too. That's kind of happening... but slowly.

So... here we are... languishing in a lost decade... or really... a lost 30 years of economic malaise.

[Ben Kenobi]

Both gribbler and KH just shocked the **** out of me.

Then they've done a service.

[Ben Kenobi]

It's not that simple... which is probably why we are in the trap. If you raise rates to make saving worthwhile for consumers, consumers will spend less and the economy will get worse.

Most of the debt that consumers are taking is debt that they will not have to repay in any meaningful timeframe. Debt that wouldn't be affected by increases in the rates. If you want people to save money - then you have to create incentives for them to save. You do this - long term, by increasing interest rates. This makes for short term pain, yes, but in the long run - that's the only way out of the liquidity trap, to raise the interest rates and let the chips fall where they may.

The only solution to this is taxing the top. There's enough supply. We need demand. If private individuals and companies don't want to risk hiring people, the government needs to.

Couple things here - where is the money going to come to finance government expansion? From the people as a whole. Increasing taxes on the top - will produce a disincentive for these folks to make money and to earn. Your revenue will very quickly dry up.

The best way to go is the opposite. You cut government spending and government positions until you are in balance. Then, the private sector will adjust and more people will get hired, and revenue will drop then increase. It doesn't take long either.

Then, it becomes about how best to spend the money... infrastructure? Clean energy?

What spending? Sava - the hole is so broad and deep - all the 'extra' money you'll get will be spent on things that were bought many years ago. Then, when revenues drop again, you'll be right back where you started except that you have less money to spend and lower revenues.

If I were in charge, I'd hire google to criss cross the nation with that 100+ mb/s internet they are experimenting with in certain cities. I'd hire companies to build electrical infrastructure... so called "smart grid"... and high voltage, long distance transmission lines. I'd do some high speed rail.

And who will pay for it?

The good thing about that type of spending is that it creates jobs domestically... and provides massive payoffs to the consumer economy. Also, it helps alleviate some of the reliance on fossil fuels.

At the cost of what? Taking on increased debt?

Also, taxes on the top isn't popular with the top because it's short term loss versus long term gains.

Just the opposite. Your revenue might increase for one year.

Also, I'd do things like legalize and tax drugs so that we can turn net losses into net revenues. That's a no brainer... and is slowly happening across the states.

Are you prepared to see a doubling and tripling in costs associated with both rehab and drug treatment?

[Sava]

a disincentive for these folks to make money and to earn

Yeah. I'd never want to make a billion dollars because of the taxes.

The rest of your post isn't worth responding to.

by increasing interest rates

Nice idea smart guy. All that consumer debt you speak of? How are they going to pay it back if interests rates balloon? You're going to do two things... make the consumer debt problem worse... and lessen consumer spending. Basically... two of the worst possible things that could occur right now.

But go for it. Maybe Jesus will return if you turn the world to ****.

dip****

[Ben Kenobi]

Yeah. I'd never want to make a billion dollars because of the taxes.

And, if we took all the wealth from every billionaire in America this would amount to under 1 trillion dollars. Less than one year's spending, deficit Sava.

Then what do you do?

All that consumer debt you speak of? How are they going to pay it back if interests rates balloon?

People will go bankrupt. Businesses will go bankrupt. Then their assets will get picked up by the solvent. Interest rate increases are inevitable, Sava. Wouldn't it be better to control the rise now rather than let it balloon later?

Basically... two of the worst possible things that could occur right now.

Purging out all the bad debt is the best thing, long term.

[Sava]

And, if we took all the wealth from every billionaire in America this would amount to under 1 trillion dollars. Less than one year's spending, deficit Sava.

If you want me to respond to you, you'll have to argue against things I have said... Mr. Strawman.

Otherwise, I'm just going to call you a child-raper.

Child raper.

[DinoDoc]

Child raper.

http://bostonherald.com/inside_track...to_clean_it_up

[Ben Kenobi]

I'd never want to make a billion dollars because of the taxes.

Would you prefer to look at the residency of those billionaires?

Look at Depardieu.

[Sava]

http://bostonherald.com/inside_track...to_clean_it_up

[Sava]

Would you prefer to look at the residency of those billionaires?

Look at Depardieu.

Your brain fascinates me.

[DaShi]

Pretty sure this is it:



[ATTACH=CONFIG]173854[/ATTACH]

OMG! DD found the conservative blog discussing the marshmallow party. Who would have guessed?

[DinoDoc]

OMG! DD found the conservative blog discussing the marshmallow party. Who would have guessed?

It's not a conservative blog.

[DaShi]

I'm sure none of them are by your standards.

[Sava]

I'm sure none of them are by your standards.

If they want government to exist in any form, they are statist rags

[MrFun]

Your brain fascinates me.

He has one?