We’re not broke — we’ve been robbed

[Locutus]

With the Friday the 13th December deadline for a federal budget deal, the cries of “we’re broke,” and “we can’t afford to keep spending,” are ringing again. But we’re not broke and acting like we are is making us poorer.

One of the biggest common misunderstandings is that governments are like households, which need to tighten their spending when times are tough. Actually, governments and households work in opposite ways.

Governments can and should spend more when times are tough. Government spending makes up for lack of spending by families and businesses, and it helps get the economy moving by getting people back to work, putting money in their pockets, and contracting with businesses.

If we needed a reminder of that, the recent government shutdown gave us one. Journalists reported story after story about how business was down, as federal workers were laid off and national parks closed. The estimates are that even though the shut down only lasted 16 days, it cost the economy $24 billion.

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PressTV - We?re not broke ? we?ve been robbed

 

[captain morgan]

That general premises works very well, but it assumes that gvt will cut back on spending and saves when the economy becomes self sufficient.

I think that we all know that when times are good, the gvt spends like sailors in port to buy the next election.

 

[JLM]

That general premises works very well, but it assumes that gvt will cut back on spending and saves when the economy becomes self sufficient.

I think that we all know that when times are good, the gvt spends like sailors in port to buy the next election.

That's their main goal..................................tenure!

 

[Christianna]

When the government causes people to lose faith in their dollar we get recessions.

 

[taxslave]

There is something to governments spending on infrastructure when times are tough. Not only does it help the economy we should also get a better deal. However far too much of our government spending is on social programs that are the equivalent to owning a boat.

 

[petros]

It also means debt.

 

[taxslave]

It also means debt.

Debt is good. Ask any loan shark.

 

[petros]

Who are the sharks that we owe?

 

[taxslave]

Who are the sharks that we owe?

Any bank. You pick.

 

[petros]

We used to borrow from ourselves through the Bank Of Canada, now it's any bank. Do we still hold any gold?

 

[BornRuff]

We used to borrow from ourselves through the Bank Of Canada, now it's any bank. Do we still hold any gold?

Sounds like somebody learned their economics from Youtube University.

That general premises works very well, but it assumes that gvt will cut back on spending and saves when the economy becomes self sufficient.

I think that we all know that when times are good, the gvt spends like sailors in port to buy the next election.

It is tough to know what to do. We don't want to endlessly run up debt, but recessions are not exactly the best time to start slashing. The US's current predicament was made much worse by the fact that while the economy was booming in the 2000's, Bush was still outspending the government's income by hundreds of billions of dollars per year.

 

[Sal]

It is tough to know what to do. We don't want to endlessly run up debt, but recessions are not exactly the best time to start slashing. The US's current predicament was made much worse by the fact that while the economy was booming in the 2000's, Bush was still outspending the government's income by hundreds of billions of dollars per year.

You are on a predominantly right winged site...Bush the idiot is a Saint... Obama is the scourge of the world... it's that simple, that black and white...

 

[JLM]

We used to borrow from ourselves through the Bank Of Canada, now it's any bank. Do we still hold any gold?

That gold is a crock of sh*t, Petros, way over valued and has been since it was $35 an oz. years ago. There's better stuff out there.