View Poll Results: Does governnent spending produce economic growth?

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  • Yes

    241 68.08%
  • No

    13 3.67%
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    100 28.25%
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Thread: Does governnent spending produce economic growth?

  1. #51
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by iacardsfan View Post
    No, I simply think we could be richer.
    We become richer by producing. Producers only produce the quantity that they expect that they can sell, and they only hire the number of workers that they need to produce that quantity of goods and services. Most Americans already spend every penny that we can get our hands on, thus the only way we could become a richer nation is if consumers had more money to demand with.

    If we want to be richer, then our battle cry should be: "Pump Baby, Pump!"
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  2. #52
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by American View Post
    Oh yeah, businesses don't add to the economy only government.
    No, remember that we have already determined that the private sector is meeting demand, and thus doing all they can. Every shelf at Walmart is filled, and every new car lot has ample cars to sell.

    For more wealth to be created, demand has to increase. For demand to increase, consumers have to have a few more bucks in their pocket. There are three ways for that to happen, the first is if wages start exceeding the inflation rate, the second is if taxes of the consumer class are reduced, and the third is if government stimulates demand by spending more.
    Last edited by imagep; 02-23-15 at 10:17 PM.
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  3. #53
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by imagep View Post
    No, remember that we have already determined that the private sector is meeting demand, and thus doing all they can. For more wealth to be created, demand has to increase.
    I guess it must be the lack of those shovel-ready jobs.
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  4. #54
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by American View Post
    I guess it must be the lack of those shovel-ready jobs.
    That was an issue. It was largely a leadership issue. Obama and his crew certainly hold blame, as do republican governors who refused to accept stimulous money.
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  5. #55
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by imagep View Post
    Yup, hyper inflation is always just around the corner.

    Fortunately, we never seen to make it to that corner.
    The deflation trap is probably worse than hyperinflation.

  6. #56
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by Declan View Post
    The deflation trap is probably worse than hyperinflation.
    Absolutely.

    I suspect that's part of the reason why the federal reserve sets a target rate of just over 0%. It's almost impossible to exactly hit a target ever time, so it's better to err on the side of a slight amount of inflation, rather than to risk any deflation.
    Quote Originally Posted by ocean515 View Post
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  7. #57
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by imagep View Post
    Absolutely.

    I suspect that's part of the reason why the federal reserve sets a target rate of just over 0%. It's almost impossible to exactly hit a target ever time, so it's better to err on the side of a slight amount of inflation, rather than to risk any deflation.
    Plus a little inflation is typically good for the economy. Overtime it makes big debts smaller.
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  8. #58
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by iacardsfan View Post
    You pump enough capital into any economy and it will grow. That does not make it correct or sustainable.
    Government does not “pump capital into any economy”. Government cannot give what it hasn't taken from someone else. Every dollar that government “pumps” into some part of the economy is a dollar that it took out of some other part of that same economy.
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  9. #59
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by mak2 View Post
    Start selling arms to the military. Big growth industry.
    But where did the military get the money to pay for the arms? Taxes. just tax as little as possible and people will spend the money on stuff they actully want and thus cause the economy grow even more.

  10. #60
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    Re: Does governnent spending produce economic growth?

    Quote Originally Posted by MildSteel View Post
    It doesn't necessarily have to come from someone. The U.S. government prints money all the time.
    Printing more money does not create wealth. Money and wealth are not the same thing. Money is a unit by which wealth is measured and exchanged. All that printing more money does is to devalue that money, so that each unit thereof represents less wealth than it did before.
    The five great lies of the Left Wrong:
    We can be Godless and free. • “Social justice” through forced redistribution of wealth. • Silencing religious opinions counts as “diversity”. • Freedom without moral and personal responsibility. • Civilization can survive the intentional undermining of the family.

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