Great Depression Myths

[Burke]

Maybe individual states should act to prevent businesses from shipping jobs to other states.

How about individual counties and cities doing the same?

Get the idea?

When workers here lose jobs to foreigners, it opens up better jobs for them here if they are willing to retrain, etc.

You always deal in the way that is most productive for you, and in the long run everyone is better off.

The only justification for special trade barriers is national security.

[GatorFanCF]

But because of big business, government must become big to prevent the great American starvation, and depopulation.

Read more: http://www.gatorcountry.com/swampgas...#ixzz2LdAJSwGR

It would interest me to know how "big business" = starvation and depopulation. Please share. Thanks.

[orangeblueorangeblue]

Originally Posted by Burke

Five years ago, people were telling me that I was a crazy conspiracy theorist for writing that banks create most of the money they lend .

There's no way this is true. This has been pretty common knowledge since ... well, since always.

[108]

Can someone explain to me how a reduction in any form of spending helps this consumer based economy?

That isn't to say the Gov shouldn't spend within it's limits, but I'm just curious

[Minister_of_Information]

Originally Posted by 108

Can someone explain to me how a reduction in any form of spending helps this consumer based economy?

That isn't to say the Gov shouldn't spend within it's limits, but I'm just curious

I can think of two reasons: compounding interest within government debt offsets the stimulative aspect of spending as debt reaches high levels, and the idea that excessive government spending leads to the long-term misallocation of capital.

[HudsonGator]

Originally Posted by Burke

The leftie college professor myth: Hoover's free market approach failed and FDR saved us with his New Deal.

Even if you disagree with her, she's nice to look at.

http://www.cato.org/blog/new-video-p...atist-policies

So, do you think she has a PhD in economics from MIT or Stanford?

[Burke]

For govt to spend, it must steal from someone who produces wealth or promise to do so later.

Pretty good reason for not doing it, I would say.

And, of course, if the govt didn't do that all those who produced the wealth they stole would be spending or investing it anyway. Making the world a better place.

People deal by trade or by force.

Capitalism is trade.

All that other stuff is . . . well, the whole leftie agenda.

That's why leftists are called parasites.

[HudsonGator]

Originally Posted by Burke

For govt to spend, it must steal from someone who produces wealth or promise to do so later.

Pretty good reason for not doing it, I would say.

And, of course, if the govt didn't do that all those who produced the wealth they stole would be spending or investing it anyway. Making the world a better place.

People deal by trade or by force.

Capitalism is trade.

All that other stuff is . . . well, the whole leftie agenda.

That's why leftists are called parasites.

So tell me something, who built those roads you drive on? Who built those schools in your city? Who built the airports you fly in and out of? Who pays for the policeman and fireman who will risk their lives for you when you call 911? Who pays for the soldiers who guard our Nation? Heck, we are on GatorCountry.com, who the heck built the University of Florida?

Still don't know...?

Answer: The government, you know, that thing for which you apparently have some irrational hate.

[T3goalie]

Originally Posted by Minister_of_Information

I can think of two reasons: compounding interest within government debt offsets the stimulative aspect of spending as debt reaches high levels, and the idea that excessive government spending leads to the long-term misallocation of capital.

Sad but true. And it is massive. What is sadder is that once the infrastructure is gone, its gone. Most have absolutely no clue or idea what you are saying. Current fiscal and monetary policies are Destroyers, plain and simple.

[Burke]

Omit

[Burke]

Orange,

I was the one on the receiving end.

In fact, some guy was still saying I was crazy for writing about here it less than a year ago.

I was on Scout about 4-5 years ago, and not a single poster there would believe banks create money. I may as well have been claiming to be from Mars.

It's something that has led me to believe that people are being educated on the Internet at incredible speed.

[Burke]

"So tell me something, who built those roads you drive on? Who built those schools in your city? Who built the airports you fly in and out of? Who pays for the policeman and fireman who will risk their lives for you when you call 911? Who pays for the soldiers who guard our Nation? Heck, we are on GatorCountry.com, who the heck built the University of Florida?

"Still don't know...?

"Answer: The government, you know, that thing for which you apparently have some irrational hate."

I could get banned if I wrote what I honestly think of anyone who believes this.

But I'll just ask:

Where does the govt get the money to pay for all this?

[MichaelJoeWilliamson]

Originally Posted by Minister_of_Information

I can think of two reasons: compounding interest within government debt offsets the stimulative aspect of spending as debt reaches high levels, and the idea that excessive government spending leads to the long-term misallocation of capital.

Indeed

Plus, it has become increasingly clear that, unlike with tax cuts, there are few multiplier impacts to government spending.

Oh sure, if we create brand new infrastructure, then one can certainly make a case that government spending might have a multiplicative impact.

But the kind of crony capitalism that Obama has pursued has been little better than throwing money down the drain.

[Minister_of_Information]

I seem to recall many discussions of fractional reserve banking back then, Burke.

[HudsonGator]

Originally Posted by Burke

I could get banned if I wrote what I honestly think of anyone who believes this.

But I'll just ask:

Where does the govt get the money to pay for all this?

You said quite clearly that government only spends what it steals or what it promises to steal in the future and thus it should not spend.

So obviously, you are asking the wrong question. The question is, if, as you say, government is so bad, how can it do all the things I listed?

Further, if your premise is correct, that government only exists because it steals, then ipso facto, government should not exist.

Do you really want to go back to the middle ages?

[Swampmaster]

Originally Posted by Itssaul

A big reason there are more "unproductive" people is that middle class jobs have been shipped overseas. .

The CEO's only duty is to maximize the value of the firm. If that means using labor at 1/5 the cost overseas, that's what he/she should do. Stockholders are not buying stock and paying the CEO a big salary to act as a charity case for overpaid US workers.

[Burke]

Hudson,

The govt is stealing wealth from productive people and using it to pay for all those things "for everyone." Usually to buy their votes.

It's nothing but wealth redistribution. Productive people being forced to provide stuff for others who pay little or nothing.

[dangolegators]

Originally Posted by Burke

Actually, I think getting out of a war and reducing the spending caused by it will help an economy.

Just like Obama is claiming.

I agree, it will help the economy in the long run. But the immediate effect of it is a huge decrease in government spending, which reduces GDP. The reduction in GDP after WW1 that the girl in the video speaks of was due to a reduction in government spending. In 1919, fed govt spending was 18 billion. By 1924, it had decreased to 3 billion. This is at a time when US GDP was less than 100 billion.

The Great Depression on the other hand was caused by a financial collapse. Only a simpleton like the girl in the video would attempt to compare the recessions that occurred after WW1 and WW2 (caused by reduced government spending) with the Great Depression (caused by a worldwide financial collapse).

[HudsonGator]

Originally Posted by Burke

Hudson,

The govt is stealing wealth from productive people and using it to pay for all those things "for everyone." Usually to buy their votes.

It's nothing but wealth redistribution. Productive people being forced to provide stuff for others who pay little or nothing.

I couldn't disagree with you more. The taxes I gladly pay every year, pay for schools, roads, firemen, policemen, the courts, jails, a national defense, etc., in other words they pay for civilization. I actually like living in the 21st century and have no desire to go back to the Middle Ages.

I thank God that there are not many people that think as you do.

[Itssaul]

Originally Posted by Swampmaster

The CEO's only duty is to maximize the value of the firm. If that means using labor at 1/5 the cost overseas, that's what he/she should do. Stockholders are not buying stock and paying the CEO a big salary to act as a charity case for overpaid US workers.

Never said he/ she should not do just that... Just an observation.


Of course the loudest people on the ex middle classers not paying taxes are those CEO's and stockholders