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

Voters
94. You may not vote on this poll
  • Agree, you can't (generally)

    42 44.68%
  • Disagree, you can (generally)

    52 55.32%
Page 2 of 26 FirstFirst 123412 ... LastLast
Results 11 to 20 of 255

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

  1. #11
    Sage
    Dav's Avatar
    Join Date
    Mar 2009
    Location
    Virginia
    Last Seen
    04-16-16 @ 02:36 AM
    Gender
    Lean
    Libertarian - Right
    Posts
    5,539

    Re: You can't spend your way out of a recession

    Quote Originally Posted by obvious Child View Post
    Both. But primarily government. Some users here think that government spending cannot end a recession.

    I present China right now as evidence they are wrong.
    What kind of government spending, specifically, do you think can end a recession?

  2. #12
    Enemy Combatant
    Kandahar's Avatar
    Join Date
    Jul 2005
    Location
    Washington, DC
    Last Seen
    10-15-13 @ 08:47 PM
    Gender
    Lean
    Liberal
    Posts
    20,688

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Dav View Post
    What kind of government spending, specifically, do you think can end a recession?
    Virtually ANY government spending will help the economy in the short term, as long as it gets money into the economy quickly. But the most effective things IMO are increasing/lengthening unemployment benefits, providing direct assistance to state governments, and ready-to-go infrastructure improvements.
    Last edited by Kandahar; 02-14-10 at 10:51 PM.
    Are you coming to bed?
    I can't. This is important.
    What?
    Someone is WRONG on the internet! -XKCD

  3. #13
    Sage
    Dav's Avatar
    Join Date
    Mar 2009
    Location
    Virginia
    Last Seen
    04-16-16 @ 02:36 AM
    Gender
    Lean
    Libertarian - Right
    Posts
    5,539

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Kandahar View Post
    Virtually ANY government spending will help the economy in the short term, as long as it gets money into the economy quickly.
    Even welfare spending? Paying people to be less productive will help the economy?

  4. #14
    Enemy Combatant
    Kandahar's Avatar
    Join Date
    Jul 2005
    Location
    Washington, DC
    Last Seen
    10-15-13 @ 08:47 PM
    Gender
    Lean
    Liberal
    Posts
    20,688

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Dav View Post
    Even welfare spending? Paying people to be less productive will help the economy?
    Absolutely. Welfare recipients spend money on consumer goods and services too. And when we have double-digit unemployment, I wouldn't worry too much about people being less productive. There are plenty of people who would love to work who can't find a job.
    Are you coming to bed?
    I can't. This is important.
    What?
    Someone is WRONG on the internet! -XKCD

  5. #15
    Sage
    Dav's Avatar
    Join Date
    Mar 2009
    Location
    Virginia
    Last Seen
    04-16-16 @ 02:36 AM
    Gender
    Lean
    Libertarian - Right
    Posts
    5,539

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Kandahar View Post
    Absolutely. Welfare recipients spend money on consumer goods and services too.
    Hm. So if it's just a matter of getting money to people, wouldn't tax cuts be more effective, in that people would be able to actually choose what their money is being spent on?

  6. #16
    Traditionalist
    phattonez's Avatar
    Join Date
    Jun 2009
    Location
    Los Angeles, CA
    Last Seen
    12-05-17 @ 03:45 PM
    Gender
    Lean
    Other
    Posts
    20,072

    Re: You can't spend your way out of a recession

    Quote Originally Posted by obvious Child View Post
    Both. But primarily government. Some users here think that government spending cannot end a recession.

    I present China right now as evidence they are wrong.
    China is also a phony economy right now. It won't be too long until they crash. Until time can prove either of us right/wrong.

    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

  7. #17
    Enemy Combatant
    Kandahar's Avatar
    Join Date
    Jul 2005
    Location
    Washington, DC
    Last Seen
    10-15-13 @ 08:47 PM
    Gender
    Lean
    Liberal
    Posts
    20,688

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Dav View Post
    Hm. So if it's just a matter of getting money to people, wouldn't tax cuts be more effective, in that people would be able to actually choose what their money is being spent on?
    Both tax cuts AND government spending are effective at stimulating the economy in the short term. Which is more effective depends on who is getting the money and the circumstances of the recession.
    Are you coming to bed?
    I can't. This is important.
    What?
    Someone is WRONG on the internet! -XKCD

  8. #18
    Equal Opportunity Hater
    obvious Child's Avatar
    Join Date
    Apr 2008
    Location
    0.0, -2.3 on the Political Compass
    Last Seen
    12-09-14 @ 11:36 PM
    Lean
    Other
    Posts
    19,883

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Dav View Post
    What kind of government spending, specifically, do you think can end a recession?
    That depends on the recession. A recession caused by a credit crisis would indicate that money needs to be first spent in shoring up the financial sources of credit and compensating for the decline in money velocity and MPS.

    A recession caused by a steep decline in a specific industrial area would indicate spending in that area.

    In some ways, the idea of trickle down is valid as we saw with Reagan's expansion of the military which caused large corporate profits in the defense industry. That in turn caused the defense contractors to expand their own production causing suppliers to expand. And so on and so forth. As more workers are hired, more money flows into the economy through their spending of wages. Eventually the MPS, if high, takes over.

    Credit crisis are some of the worst as they hit the very essence of what drives modern economies. Like it or not, modern economies are largely built upon houses of cards. Remove credit and much of that house falls to pieces. Only a relative few large corporations these days don't rely upon financing. And how many people do you know that bought their house without financing? Hell, most people can't even do that with a car.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  9. #19
    Equal Opportunity Hater
    obvious Child's Avatar
    Join Date
    Apr 2008
    Location
    0.0, -2.3 on the Political Compass
    Last Seen
    12-09-14 @ 11:36 PM
    Lean
    Other
    Posts
    19,883

    Re: You can't spend your way out of a recession

    Quote Originally Posted by phattonez View Post
    China is also a phony economy right now. It won't be too long until they crash. Until time can prove either of us right/wrong.
    Your point isn't valid. Whether or not they crash is irrelevant. China is showing you can stimulate your economy with government financing. Their failure to do it properly does not invalidate my argument. And China isn't a phony economy. Unstable yes, but not phony.

    And people who claim that government spending cannot build an economy should visit South Korea.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  10. #20
    Sage
    apdst's Avatar
    Join Date
    Jun 2009
    Location
    Bagdad, La.
    Last Seen
    Today @ 09:20 AM
    Gender
    Lean
    Very Conservative
    Posts
    76,584

    Re: You can't spend your way out of a recession

    Quote Originally Posted by Kandahar View Post
    Completely disagree. In fact, spending is the ONLY way to get out of a recession. A recession is pretty much defined by the lack of spending.
    If that were the answer, then we would already be out of this recession, rather than looking at another big decline in the second half of 2010.
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

Page 2 of 26 FirstFirst 123412 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •