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America borrows it's way out of a debt crisis.
Comments
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Graham_Devon wrote: »I said debt, not deficit.
Reducing the deficit is a precursor to reducing the debt.
They're on track.
Because they spent their way out of recession.
Whereas we tried to cut our way out, and quite predictably, failed in spectacular fashion.
With the slowest recovery in history.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
In nominal terms, how much has GDP increased compared to how much was borrowed?
Or what is the return?0 -
In nominal terms, how much has GDP increased compared to how much was borrowed?
Or what is the return?
No idea.
The returns as a percentage of GDP however are pretty impressive.
From a 10% deficit to a 4% deficit in 4 years, and on track to reach a 2% deficit in 6 years.
Which would mean the debt was then reducing in real terms.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
America is just better at spending money (borrowed or otherwise) on the more productive parts of the economy.
Here on the other hand a penny saved is a penny to waste on something else.0 -
America is just better at spending money (borrowed or otherwise) on the more productive parts of the economy.
Here on the other hand a penny saved is a penny to waste on something else.
Very possibly.
But that doesn't change the fact that the way out of this mess is to stimulate growth now that will eventually become self-sustaining.
And if investment is required to do so then spending/borrowing more is the more sensible financial option than cuts which only prolong the depression.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
America is just better at spending money (borrowed or otherwise) on the more productive parts of the economy.
Here on the other hand a penny saved is a penny to waste on something else.
Bob Q posted an interesting link on how productive Boeing have been with the latest airliner. Most effective at squandering future air passenger fares for decades to come.
Most effective at creating aspirational/conspirational "brands" out of thin air hoovering revenue across the globe for things like fizzy flavoured water. Really useful stuff like that or releasing functionality over 5 releases when 2 would do.."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »Very possibly.
But that doesn't change the fact that the way out of this mess is to stimulate growth now that will eventually become self-sustaining.
And if investment is required to do so then spending/borrowing more is the more sensible financial option than cuts which only prolong the depression.
If we all didn't waste so much money on tat, from abroad, to feel good about ourselves perhaps we wouldn't need to keep inventing and borrowing money. Especially inflated tat from US corporations. At least the Germans provide something of substance and craftsmanship even if it is overpriced."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Especially inflated tat from US corporations. At least the Germans provide something of substance and craftsmanship even if it is overpriced.
You do like your stereotypes....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
That is a big assumption with no evidence that it will happen.HAMISH_MCTAVISH wrote: »Very possibly.
But that doesn't change the fact that the way out of this mess is to stimulate growth now that will eventually become self-sustaining.
And if investment is required to do so then spending/borrowing more is the more sensible financial option than cuts which only prolong the depression.
Is growth based purely on borrowing any sort of long to medium term solution?0 -
That is a big assumption with no evidence that it will happen.
Is growth based purely on borrowing any sort of long to medium term solution?
Not really an assumption, but rather established economic theory with plenty of real world evidence that it works.
Just as it is working today in the USA.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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