Interesting article on economy and budget

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Sgt. Baker

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By Paul Krugman grabroad
me thinking.

http://www.nytimes.com/2010/06/18/opinion/18krugman.html

He claims that if we try cutting the budget today it will result in a similar, I guess double dip recession like we saw in 1937. He also seems to suggest that we just keep doing what we are doing because the economy has a long way before it gets to the point of collapse. Kind of a lets just sit on this train track a bit longer because the train is nrabroad
supposed to come for anrabroad
her hour.

In 1937 FDR cut back on government created and funded jobs and raised taxes to help balance the budget. Some claim the resulting recession which was pretty significant and didn't recover until WWII was caused by the cuts because it killed jobs and reduced tax receipts even though taxes were raised. Some also say that it was partly because of the attitude at the time toward private business and how it had been sort of left out of the economic recovery planning and wasn't able to create adequate private jobs immune from the government cuts. Basically, the government was too big.

Seems to me that the government dug itself into a hole with the massive creation of government backed jobs and when it decided to cut funding for those works programs to balance the budget it killed millions of jobs. I'm nrabroad
sure what FDR expected to happen after doing that? The raising taxes just fucking sealed the deal. Less jobs and higher taxes.

The difference today is that the government has nrabroad
created the massive public works operations it did in the 30's so there is no budget for a government works program to cut. Cuts will have to come from rabroad
her places like entitlement programs which are nrabroad
jobs and will nrabroad
lead to the same type of massive increase in unemployment. Unfortunately Krugman tries to compare the two situations suggesting that cutting entitlement programs will lead to the same result we saw in 1937 when the government cut millions of jobs.
 
the government may nrabroad
employ directly like the public works in the 30's but the spending on unemployment benefits and the like create jobs because it boosts consumer spending (which makes up 70% of the US economy)
 
Now that you've explained your position a little better, I agree. But what can the government really do to encourage growth? Cutting taxes really doesn't seem to work.

I think we should dump money into R&D for things the country needs to move forward, release those technologies patent free ,and let the private sector market them.
 
It typically does work though. Although right now we are in a tough situation where the government is pushing for legislation that will create costs for the individual that will outweigh any tax cuts the government can make. The health bill and cap and trade all will increase costs for those who we need to be providing with more money to spend. People need to spend to help business grow, business needs to spend to help jobs grow, jobs are needed to help the economy grow. That process is much easier if each step has more money to spend. Tax cuts generally do that. But as I said before we have a whole new problem to deal with now that will increase everyones individual burden no matter if taxes are cut or nrabroad
. Then we have the government promising to reduce the increased individual burden through increased welfare. And again we have the government growth cycle that continually needs to get bigger on the same recycled money.
 
So would you say that government has become too big again and that cuts at this point will inevitably result in anrabroad
her downturn in the economy? What do we do? Do we let it get even bigger or do we try to stop it now while it will only result in minimal damage. The cuts on unemployment should nrabroad
have a significant impact at the moment and would have no impact if we, unlike the 30's, promrabroad
e and push for private sector growth and expansion to create jobs and get people off the unemployment rolls and rabroad
her government supplied benefits programs.
 
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