mame
Well-Known Member
In the long run, things could get better on their own but "in the long run, we are all dead"... Just sitting here and allowing the economy to contract for years on end is irresponsible.things ARE irreparably damaged. In order for our economy to get better we need to crash and quit prolonging it as this will only worsen the blow
the longer we wait the worse this is going to be WHEN it happens
and bozos? really? I think the name calling can stop
labeling tens of thousands of people as "bozos" seems kind of bias
this guy might as well be on the fox news payroll!! lol
The proper response in the liquidity trap is to boost aggregate demand. What's the easiest way to do that? In the form of government spending - whether direct spending or demand side tax cuts. Really, whatever boosts spending will work but the ultimate goal is to close the output gap and thusly reach full employment once again.
Besides the fact that inaction is an economic and human tragedy in terms of employment and national output and competitiveness - inaction is the worse action policymakers can take in respect to our fiscal prospects as well. The longer workers are without jobs and are not paying taxes, the more money the government is forced to borrow in order to meet it's obligations and commitments dictated by current law. A prolonged slump ala Japan will only put us exactly in Japan's shoes - an over 200% debt to GDP burden. Is that really what you want? All current projections of the US debt load show that the short term deficit can be closed primarily just by reaching full employment, but that requires policymakers actually do something about unemployment.