General Discussion

cthulu2016

(10,960 posts)

26. I would like to see the results adjusted for *total* debt in

Sat Mar 9, 2013, 04:08 PM

Mar 2013

an economy or a currency... or even the world.

I do not see any mechanism for our government debt today to restrict USA growth because total debt in the American economy is down. The people stopped spending more than the government started spending.

A debt caused by a consumer demand crash should play out differently than a debt caused by simple extravagance because in the later case the government might be competing for debt, which could inhibit growth in extremes.

But debt incurred to make up only a fraction of a larger drop in demand should not be inflationary, should not raise interest rates, and should not deter anyone from starting a business. (They will be deterred by a lack of customers, but not by the government debt.)

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Do our leaders know that the deficit is NOT unsustainable? [View all] cthulu2016 Mar 2013 OP

"The only reason the deficit is unsustainable today is because of efforts to fight the deficit. " abelenkpe Mar 2013 #1

Exactly. Unemployment is driving the deficit, not spending. Fewer jobs means slower economy and JaneyVee Mar 2013 #2

The OP suggests there is not a low tax rate problem, in *deficit terms* cthulu2016 Mar 2013 #7

I meant raising top tax rate for the rich to help pay down debt while investing in America & jobs. JaneyVee Mar 2013 #9

I agree with all of that except "pay down debt" cthulu2016 Mar 2013 #15

And investing in America & jobs. JaneyVee Mar 2013 #19

I agree with "investing in America & jobs" cthulu2016 Mar 2013 #22

Debt Overhangs: Past and Present dkf Mar 2013 #3

Too Much Debt Means the Economy Can�t Grow: Reinhart and Rogoff dkf Mar 2013 #4

This appears to be a confusion of correlation and causation cthulu2016 Mar 2013 #5

There are obviously economic theories on why this is so, but some food for thought: dkf Mar 2013 #10

If lenders had an inflexible 90% rule of thumb then cthulu2016 Mar 2013 #13

There seems to be two levels of impact. dkf Mar 2013 #16

You make a good point here. dkf Mar 2013 #23

I would like to see the results adjusted for *total* debt in cthulu2016 Mar 2013 #26

I've seen that type of data from them. dkf Mar 2013 #27

What I have read about their book sounds interesting cthulu2016 Mar 2013 #29

You are right that a big stimulus was needed and if we had done the dkf Mar 2013 #30

If the debt and deficits are so bad, then why won't Republicans advocate for higher taxes? Yavin4 Mar 2013 #6

I wish we could view this very analytically so that we could fix the structural problems. dkf Mar 2013 #11

In 2000, the Deficit and the Debt problems were solved or Yavin4 Mar 2013 #14

I blame Greenspan for the housing bubble. dkf Mar 2013 #18

Yes, but the bill for the internet bubble was going to be paid either way. cthulu2016 Mar 2013 #20

Bush + Greenspan = recipe for disaster. dkf Mar 2013 #21

Greenspan not withstanding, It's very difficult for Americans to take discussions about the... Yavin4 Mar 2013 #25

I hear what you are saying. 99Forever Mar 2013 #8

Growth doesn't necessarily mean using resources. It could be services. dkf Mar 2013 #12

If they were reprentatives rather than "leaders" they would know. Tierra_y_Libertad Mar 2013 #17

Sooner or later the debt has to be addressed, that is a fact. MadHound Mar 2013 #24

Bingo. It's primarily a lack of revenue problem. The F-35 could be considered a waste of spending. talkingmime Mar 2013 #28

I love how Krugman completely ignores debt held by the trust fund taught_me_patience Mar 2013 #31

??? (revisit what was being calculated) cthulu2016 Mar 2013 #32

The normal rate of growth, 3%-5%, will not return. former9thward Mar 2013 #33

That is possible, but if we are planning for that in one sense (deficit) then cthulu2016 Mar 2013 #34

We should but neither party will tell the truth. former9thward Mar 2013 #35