General Discussion

quaker bill

(8,251 posts)

4. A common misconception

Sun May 27, 2012, 01:53 PM

May 2012

is that hoarded wealth is "in the economy". It is actually on the sidelines of the economy.

A second misconception is the notion that "we can't borrow money" sustainably. We have been "borrowing" money since the Reagan tax cuts by the tanker load, with the exception of two years at the end of the Clinton Admin. In short, for 30 of the last 32 years.

It is a large pile of "debt" to the extent one can have debt in a currency we own and print. However the easiest solution is to just grow GDP. A bit of inflation would help there, say 3 of 4 percent. It is called monetizing the debt, and it is an American tradition.

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Romney Admits Budget Cuts Would Throw Economy Into ‘Recession Or Depression’ [View all] SunsetDreams May 2012 OP

Spending cuts or tax increases will do it. (we're pretty much screwed) Cronkite May 2012 #1

How about tax increases with an increase in spending? drm604 May 2012 #2

That does nothing to address the 10% of GDP we are borrowing & spending. Cronkite May 2012 #3

A common misconception quaker bill May 2012 #4

I was going to reply Prophet 451 May 2012 #5

And how it that working out for us? Cronkite May 2012 #6

It is not sustainable forever. True. cthulu2016 May 2012 #7

The Federal government doesn't need to borrow.. girl gone mad May 2012 #9

Recent Republican Presidents have governed the economy as Keynesians... girl gone mad May 2012 #8