View Poll Results: You can't spend your way out of a recession

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  • Agree, you can't (generally)

    42 44.68%
  • Disagree, you can (generally)

    52 55.32%
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Thread: You can't spend your way out of a recession

  1. #161
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by nonpareil View Post
    Whichever one employs the most people with the highest wages so they can have the highest living standard possible. If the government can sell war goods to other countries for a premium and the import cheap everyday goods from China to satisfy everyone, the answer is 1. You should read more about Comparative Advantage if you're going to spend so much time in an Economics forum.
    How is it so obviously 1? You're still producing things of no value and there is no guarantee that the war goods are more valuable than other things that could be produced. It seems that most of the time you will be worse off this way.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

  2. #162
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by phattonez View Post
    How is it so obviously 1? You're still producing things of no value and there is no guarantee that the war goods are more valuable than other things that could be produced. It seems that most of the time you will be worse off this way.
    Do I have to give you a lesson in reading as well?

    When reading for comprehension there's a few things you should take note of:

    The premise, e.g. Whichever one employs the most people with the highest wages so they can have the highest living standard possible.

    The condition, e.g. If the government can sell war goods to other countries for a premium and the import cheap everyday goods from China to satisfy everyone,

    The conclusion, e.g. the answer is 1.

    Normally, when people dispute the conclusion, they can say the premise is not right so the conclusion is invalid, or that the condition is not met so the conclusion is invalid.

    Your response is equivalent to this:

    nonpareil: x=y. Given x=2, y=2.

    phattonez: How is y = 2? a+b+c = 10.
    Last edited by nonpareil; 02-26-10 at 08:39 PM.

  3. #163
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by phattonez View Post
    And that money isn't in the economy at the time. The money that people do have then will be worth more until that money gets back into the economy.
    So there's no spending unless the government do it.
    Last edited by nonpareil; 02-26-10 at 08:39 PM.

  4. #164
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by nonpareil View Post
    So there's no spending unless the government do it.
    No government spending, anyway.
    Education.

    Sometimes I think we're alone. Sometimes I think we're not. In either case, the thought is staggering. ~ R. Buckminster Fuller

  5. #165
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by phattonez View Post
    Now, by what you're showing me, you're trying to argue that government needs to prop up demand in order to keep an economy going. Make work programs, inflation, it's all the same.
    Yes, and cut taxes, rebuild/fix infrastructure, write grants, and loans.

    All of these are expansionary fiscal policy, which increase aggregate demand (get us out of a recession). Work programs allow for more work, making people who wouldn't otherwise work get work, or underemployed get better job skills with which to get a better job. This in turn is more workers - more wages being paid out: aggregate demand increases because more people are contributing to purchasing of more goods. It's supply and demand. The same works for cutting taxes - public has more more: more demand. Rebuilding infrastructure goes along with jobs while writing grants and loans allows for more purchasing of goods and services. All of these methods have a lagging period because it takes a deal of time for those benefited to begin contributing to aggregate demand.

    Even with that, we still are seeing a growth in GDP which means we are technically out of the recession. I'm not saying we need more spending, but I am justifying the stimulus package.

    When you think about it, the question "Can you spend your way out of a recession?" is a little foolish since we already have.
    "All mankind is of one author, and is one volume; when one man dies, one chapter is not torn out of the book, but translated into a better language...No man is an island, entire of itself...any man's death diminishes me, because I am involved in mankind; and therefore never send to know for whom the bell tolls; it tolls for thee." - John Donne

  6. #166
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    Re: You can't spend your way out of a recession

    I spent more money today, than I had coming in. I must be getting rich.
    "Don't be particular bout nothin, but the company you keep"

  7. #167
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by Skateguy View Post
    I spent more money today, than I had coming in. I must be getting rich.
    Nice straw man.

  8. #168
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by Sanitas View Post
    Yes, and cut taxes, rebuild/fix infrastructure, write grants, and loans.

    All of these are expansionary fiscal policy, which increase aggregate demand (get us out of a recession). Work programs allow for more work, making people who wouldn't otherwise work get work, or underemployed get better job skills with which to get a better job. This in turn is more workers - more wages being paid out: aggregate demand increases because more people are contributing to purchasing of more goods. It's supply and demand. The same works for cutting taxes - public has more more: more demand. Rebuilding infrastructure goes along with jobs while writing grants and loans allows for more purchasing of goods and services. All of these methods have a lagging period because it takes a deal of time for those benefited to begin contributing to aggregate demand.

    Even with that, we still are seeing a growth in GDP which means we are technically out of the recession. I'm not saying we need more spending, but I am justifying the stimulus package.

    When you think about it, the question "Can you spend your way out of a recession?" is a little foolish since we already have.
    Did you read any of the examples I wrote about explaining why GDP is a bad measure of productivity? You can't get an economy to produce the things that people want if you leave the government in charge because the government doesn't know what we want and doesn't have to operate with a risk of loss.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

  9. #169
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    Re: You can't spend your way out of a recession

    I suggest that everyone that thinks you can, send your money into the govt for the good of the nation.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

  10. #170
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    Re: You can't spend your way out of a recession

    Quote Originally Posted by American View Post
    I suggest that everyone that thinks you can, send your money into the govt for the good of the nation.
    I already do, every April 15.

    Back on topic.

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