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Economists: Failure to raise debt limit could lead to recession

BDBoop said:
Reading is not boring! You're just choosing the wrong books. I recommend George R.R. Martin and Jim Butcher for starters.
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I wasn't talking about reading, I was talking about your response and debate ethic.
 
I haven't heard of anyone doubting that the failure to raise the debt ceiling would have painful consequences. Let's say you have a bunch of credit cards coming due and no cash. If you can't take out more credit cards to pay off the old debt, the consequences will be painful.

We need to let the Federal Government issue more IOUs on our behalf. I'm worried about more than a recession as an alternative. Default would look worse than what we call recession.

That's the thing about recklessly overspending the public's money. It screws the American people in a way that they cannot be unscrewed.
 
Neomalthusian said:
I haven't heard of anyone doubting that the failure to raise the debt ceiling would have painful consequences. Let's say you have a bunch of credit cards coming due and no cash. If you can't take out more credit cards to pay off the old debt, the consequences will be painful.

We need to let the Federal Government issue more IOUs on our behalf. I'm worried about more than a recession as an alternative. Default would look worse than what we call recession.

That's the thing about recklessly overspending the public's money. It screws the American people in a way that they cannot be unscrewed.
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The problem is that there are people who want us to default. They are on the republican side.
 
Here is a thought … They are going to raise the debt ceiling anyway.. So how about this .. raise it … and agree that this is the last time for the next say 5 or 10 years that it will be raised .. so we better get our spending down to where we don't have to raise it again .. cause it's not going to happen

That way we paid our debts .. as promised … while at the same time we begin to cut .. next year when this comes up again . It can be fairly said .. that we told the American people it wasn't going to happen .. and if it demands a government shut down .. then so be it .
 
BDBoop said:
Glad you asked, Boop! Current GOP Leaders Upped Debt Limit 19 Times During Bush Presidency. Whoa, really? I'm surprised, are you surprised? I'm surprised!
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sheeez .. . I would expect even a liberal to realize .. that doing something stupid for the 20th time .. is not the answer to doing it 19 times before .. I guess some people just refuse to learn
 
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The Barbarian said:
sheeez .. . I would expect even a liberal to realize .. that doing something stupid for the 20th time .. is not the answer to doing it 19 times before .. I guess some people just refuse to learn
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RIGHT NOW. There is no other solution. They better get their **** together.

Oh, by the way? Now that it's the final countdown, The republicans are starting to rethink their stance. Quelle shock.
 
BDBoop said:
RIGHT NOW. There is no other solution. They better get their **** together.
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Of course there is. If we do not raise the limit we can still pay the things we have to. We'll just have to decide what things we choose to pay for that we aren't going to.
 
1Perry said:
Of course there is. If we do not raise the limit we can still pay the things we have to. We'll just have to decide what things we choose to pay for that we aren't going to.
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Apparently, the republicans disagree with you.
 
1Perry said:
Of course there is. If we do not raise the limit we can still pay the things we have to. We'll just have to decide what things we choose to pay for that we aren't going to.
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Which is better, cutting entire departments of government slowly or suddenly? What will "shock" the economy more?
 
The Barbarian said:
Here is a thought … They are going to raise the debt ceiling anyway.. So how about this .. raise it … and agree that this is the last time for the next say 5 or 10 years that it will be raised .. so we better get our spending down to where we don't have to raise it again .. cause it's not going to happen

That way we paid our debts .. as promised … while at the same time we begin to cut .. next year when this comes up again . It can be fairly said .. that we told the American people it wasn't going to happen .. and if it demands a government shut down .. then so be it .
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Those promises are invariably broken. If it's not in writing, it's worthless.
 
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BDBoop said:
Apparently, the republicans disagree with you.
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I don't think they actually disagree. They just don't want the taste of that "medicine" in everybody's mouths come election day.
 
Where's Uncle Milty when we need him? Oh I know, we can always search youtube if we want real sound monetary policy in the nation, but hey, what can I say? :)

I can't think of one respected economist... Oh wait, um, what's an economist exactly? LOL


Tim-
 
xpiher said:
Which is better, cutting entire departments of government slowly or suddenly? What will "shock" the economy more?
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And to think, I thought maybe we could quit spending billions bombing Libya, Afghanistan and Iraq.
 
Hicup said:
I can't think of one respected economist... Oh wait, um, what's an economist exactly? LOL


Tim-
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Just another A-Hole with an opinion.
 
OK, Lets see the first economist on the list, George Akerlof.

http://w3.epi-data.org/temp2011/economist_letter2.pdf

"http://www.theatlantic.com/politics/archive/2009/02/an-interview-with-george-akerlof/676/"




Earlier this week I spoke with George Akerlof, a professor of economics at Berkeley and a winner of the 2001 Nobel Prize in economics, about his new book, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism. The book, which Akerlof wrote with Robert Shiller of Yale, concerns departures from the full-employment economy: How do we explain the fluctuations of the business cycle, or the existence of involuntary unemployment?

According to Akerlof and Shiller, the traditional economic answers to these questions are tortured and unsatisfying. In search of a better answer, they turn to John Maynard Keynes's notion of the animal spirits: "the restless and inconsistent element in the economy" that is not easily explained by reference to rational actors with simple economic motivations.
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So he is a Keynesian. Check.
 
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Shadow Serious said:
So he is a Keynesian. Check.
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Oh please, feel free to list the hundreds of conservative economists that think defaulting on our financial commitments will be a good thing.
 
1Perry said:
And to think, I thought maybe we could quit spending billions bombing Libya, Afghanistan and Iraq.
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The war cost aren't even 2trillion a year. You can end them today, and you'd still have a budget short fall. What I was addressing with my question is what will happen if the government defaults. Either debts won't be paid or government agencies will suddenly vanish.
 
Also on the list is "Stimulus Man" Alan Binder:

Alan S. Blinder: My Economic Wish List - WSJ.com

FEBRUARY 4, 2009

While wiping my desk lamp the other day, a genie appeared, offering me -- you guessed it -- three wishes. I first asked him to restore my portfolio to its former glory. He demurred: "No, I only grant wishes for the national economy. And I only do things that real policy makers can do -- no magic for this genie. But think big. We're in a mess."


So here's what I wished for:

- Stimulus that works. My first wish is that Congress quickly pass a large stimulus bill that exhibits intelligent design. The overall number being discussed, in the $800 billion plus range, seems reasonable to me even though some economists are clamoring for much more. My wish relates to the package's composition.

My first worry is the spend-out rate -- stimulus is, after all, about shortening recessions. Given the choice, I'd prefer an $800 billion stimulus with $600 billion spent in the first 12 months to a $1 trillion stimulus with $300 spent in the first 12 months.
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Not too dated and still looking for more
 
Catawba said:
Oh please, feel free to list the hundreds of conservative economists that think defaulting on our financial commitments will be a good thing.
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That is a fallacious arguement. Not raising the debt limit does not mean we will default on anything. Maybe we will have to quit bombing Libya.
 
Catawba said:
Oh please, feel free to list the hundreds of conservative economists that think defaulting on our financial commitments will be a good thing.
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Which is not quite the same thing as borrowing even more money to meet existing commitments. Sorry the keg is almost to the foam its tapped out.
 
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