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Govt to suspend Cash for Clunkers program

Probably not. However I would have bought bread, meat, milk, vegatables, energy, shelter, without someone 'creating' demand. I'm wondering what idiot(s) came up with the idea that it was good business over produce farm products just because he wanted to gain advantage by driving prices down so others would have to sell their land to him.

What the hell are you even talking about?
 
The only rigging of the supply and demand chain is by our government. All things being equal and without government interference, the laws of supply and demand work. If there is a demand for an item with resources available to purchase the item, the market will respond by producing more of the item.

However, when you introduce government incentives or disincentives into the picture, you are artificially tipping the scales of supply and demand in the favor of a product or service that best suits a political agenda as opposed to the wants and needs of the market.

Yet until government regulation was firmly fixed in 1933 we had depressions about every 10-15 years. Now, even when conditions are ripe for a depression, government regulators were able to step in and reduce the depression to a recession. Free market and supply and demand systems don't work without intergovernmental and government cooperation and regulation.
 
If I confiscate enough money from one individual to provide 1000 people with enough money to meed their needs (demands) I am generating demand from taxes. Your model fails because you don't correct for units (buying and using).
Wrong. The demand already existed. You simply took money (supply) from one group and gave it to another group.

The question you need to ask yourself is, how many times can you do this? What happens when the one individual runs out of money or leaves the country due to having his wealth confiscated? Why not let the one individual invest his money in an enterprise that provided jobs to the 1000 people. In that scenario, their needs will be met over and over and the one individual is able to maintain his wealth so he doesn't run out of money or to another country?
 
Yet until government regulation was firmly fixed in 1933 we had depressions about every 10-15 years. Now, even when conditions are ripe for a depression, government regulators were able to step in and reduce the depression to a recession. Free market and supply and demand systems don't work without intergovernmental and government cooperation and regulation.

So, what with all this steel that has been introduced into the metal industry, thanks to cash for clunkers, what's going to happen to metal prices?

Another bailout, anyone?
 
Wrong. The demand already existed. You simply took money (supply) from one group and gave it to another group.

The question you need to ask yourself is, how many times can you do this? What happens when the one individual runs out of money or leaves the country due to having his wealth confiscated? Why not let the one individual invest his money in an enterprise that provided jobs to the 1000 people. In that scenario, their needs will be met over and over and the one individual is able to maintain his wealth so he doesn't run out of money or to another country?

There can be no demand without resources to exercise that so called existing demand. If I am the power or the powers and I can generate enough fear I can do this forever. It's just like suppl y and demand. In fact it's what underlies a free market, greed and fear. If greed becomes excessive proper counter measures using fear corrects the excess of greed and restores a balance between the two.
 
Life creates demand for many things.

You're partly right, but government can't create a demand for goods and services, then think that the economy is going to survive on that demand.
 
Yet until government regulation was firmly fixed in 1933 we had depressions about every 10-15 years. Now, even when conditions are ripe for a depression, government regulators were able to step in and reduce the depression to a recession. Free market and supply and demand systems don't work without intergovernmental and government cooperation and regulation.

Regulators stepped in and borrowed Trillions of dollars from the Chinese and other countries that we will probably never be able to repay. They have sold this country down the river. They will end up dragging this recession out for years longer than it would have been by their regulating.

Read this article. You might learn something:
http://www.cato.org/pub_display.php?pub_id=9880

However, I submit that if it were not for unnecessary regulation, we would not have even gotten into the current recession. The Community Reinvestment Act of 1979 introduced government policies and regulations that helped put the economy into the recession we are currently in.
 
You're partly right, but government can't create a demand for goods and services, then think that the economy is going to survive on that demand.

Actually, I'm one of those whose job it is to 'create' demand. I know I'm on the margin. Normal exercise of life as technology develops produces sufficient awareness of what is available and effective in conducting life. that is all the demand one should require to satisfy needs for available products to sustain everybody in an enlightened society.

The expectation that unlimited greed should be permitted to drive demand to one's benefit is in error. Take the example of Denmark. Health care, high taxes, low unemployment, happy, they have it all.
 
Regulators stepped in and borrowed Trillions of dollars from the Chinese and other countries that we will probably never be able to repay. They have sold this country down the river. They will end up dragging this recession out for years longer than it would have been by their regulating.

Read this article. You might learn something:
Not-So-Great Depression | Jim Powell | Cato Institute: Commentary

However, I submit that if it were not for unnecessary regulation, we would not have even gotten into the current recession. The Community Reinvestment Act of 1979 introduced government policies and regulations that helped put the economy into the recession we are currently in.

Regulators didn't borrow. They printed money which, if it isn't soaked up in the wrap up to the bailout, will have to be financed. the Congressional bailout will result in borrowing. On the other hand, if the US isn't buying, China ain't prospering. Interesting you point to the creation of Freddie and Fannie as the problem. Uh, no, that wasn't it. Adjustments made to regulation of borrowing policies in the mid nineties left open the opportunity for highly leveraged debt and insurance products which got us there.

It's also interesting that you don't acknowledge that there were no depressions since 1933, when before that time there were depressions almost every decade from 1790 on. When ambitious people untie themselves from minimal constraints excess always results.
 
Regulators didn't borrow. They printed money which, if it isn't soaked up in the wrap up to the bailout, will have to be financed. the Congressional bailout will result in borrowing. On the other hand, if the US isn't buying, China ain't prospering. Interesting you point to the creation of Freddie and Fannie as the problem. Uh, no, that wasn't it. Adjustments made to regulation of borrowing policies in the mid nineties left open the opportunity for highly leveraged debt and insurance products which got us there.
One of the principle reasons that the debt was leveraged was because of the underlying understanding that the debt vehicles (bundled mortgages) being packaged as AA bonded securities would be backed by the Federal Government. However, what no one was telling was that Fannie and Freddie did not have the funds to back those securities. Partly because of the over extension of credit mandated by the liberals in Congress (i.e. Barney Frank and Chris Dodd) while those at the top of those organizations were taking home those big bonuses that liberals like to scream about.


It's also interesting that you don't acknowledge that there were no depressions since 1933, when before that time there were depressions almost every decade from 1790 on. When ambitious people untie themselves from minimal constraints excess always results.
You didn’t get it did you? If we had let the economy tank a couple of times, people would not be so willing to have their money tied up in risky investments. Sometimes failure is a great motivator. But when we have the government protecting us from ourselves, we get the behavior your seem to deplore .
 
Actually, I'm one of those whose job it is to 'create' demand. I know I'm on the margin. Normal exercise of life as technology develops produces sufficient awareness of what is available and effective in conducting life. that is all the demand one should require to satisfy needs for available products to sustain everybody in an enlightened society.

The expectation that unlimited greed should be permitted to drive demand to one's benefit is in error. Take the example of Denmark. Health care, high taxes, low unemployment, happy, they have it all.


Oh, so you're one of the clowns out there wasting our tax dollars?

The Danes don't have as much freedom as I do. So, they don't have it all.

The government can't tell me that I can't rich. That ain't a free society.
 
Oh, so you're one of the clowns out there wasting our tax dollars?

The Danes don't have as much freedom as I do. So, they don't have it all.

The government can't tell me that I can't rich. That ain't a free society.

First you don't live in a free society. You live in a state with a constitution with rights and responsibilities spelled out. Go outside the law and you'll soon find just how not free you are.

No one is going to stop you from being rich. they are just going to tax you such that no one will be destitute.

Hey, I'll go with employed, covered, live longer and healthier, and happier.
 
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You didn’t get it did you? If we had let the economy tank a couple of times, people would not be so willing to have their money tied up in risky investments. Sometimes failure is a great motivator. But when we have the government protecting us from ourselves, we get the behavior your seem to deplore .

Actually, we get it. We got tired of crashes so we reined in excess which worked real well until those who exude greed forgot what unbridled greed can wrought. Deregulation began with Nixon and went into overdrive during Reagan. By the late nineties controls had been removed and experimentation was on in full force. We needn't have depressions to constrain excessive greed. We just need to recognize that such exists and unless controlled excess is inevitable.
 
Yet until government regulation was firmly fixed in 1933 we had depressions about every 10-15 years. Now, even when conditions are ripe for a depression, government regulators were able to step in and reduce the depression to a recession. Free market and supply and demand systems don't work without intergovernmental and government cooperation and regulation.

Every 10-15 years? Where do you get your information?
Government regulation firmly fixed?

I think you need to do some reading up on the 5 depressions we have had.
All of them have been caused by government intervention and/or paper money.

[ame=http://en.wikipedia.org/wiki/Depression_of_1807]Embargo Act of 1807 - Wikipedia, the free encyclopedia[/ame]

[ame=http://en.wikipedia.org/wiki/Panic_of_1837]Panic of 1837 - Wikipedia, the free encyclopedia[/ame]

[ame=http://en.wikipedia.org/wiki/Panic_of_1873]Panic of 1873 - Wikipedia, the free encyclopedia[/ame]

[ame=http://en.wikipedia.org/wiki/Panic_of_1893]Panic of 1893 - Wikipedia, the free encyclopedia[/ame]

[ame=http://en.wikipedia.org/wiki/Great_Depression]Great Depression - Wikipedia, the free encyclopedia[/ame]
 
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