Zeb Hesselgresser: Which tree are you plucking those $20 bills off of?
nmemkha: Banks invest deposits (keeping enough on-hand to meet Reserve requirements) and then invest the rest
Mach10: Put $20 into the pocket of a rich guy, and it goes right to the bank. Put $20 in the pocket of a working-class citizen, and it goes right into the cash register of your local store.
Mach10: Zeb Hesselgresser:Which tree are you plucking those $20 bills off of?Well, the billions of nearly zero-interest bailout loans look pretty arboreal to me.Let me be blunt: Fiscal policy requirements in times of economic crisis are not the same as in prosperity.This is why the right wing persistently screws up economies the world over again and again: You people just cannot grasp the concept that in times of need, the question "how did we get here" just isn't relevant when the question "how the hell do we get out" is more pressing. The same fiscally conservative policies that may (or may not; that's a subject for legitimate debate) help maintain a healthy economy, but they sure-as-shiat don't help a failing economy. If you sever money flowing into the working class, you lower your expenditures, but since Greece (like most western nations) derive between 60 and 80% of their taxation revenue from people at or below the national wage average, stretching this demographic further means that the 20% savings to your operating budget results in a double to triple loss in your revenue. [Source: OECD]When the boat is taking on water, everyone should be concerning themselves with rowing and bailing--not pushing sailors overboard. Plenty of time to hang the captain when you get a-shore.Nationalize the banks if necessary, but Investing this bailout money heavily in infrastructure provides the foundation of a capitalist society with money which will immediately be spent on the service industry. This wealth then subsequently moves up the chain, offering more jobs. The new infrastructure is now an asset which needs to be maintained (costs money) but also generates revenue from more jobs, increased trade, and operational income. This isn't socialism, it's farking common sense--and it worked out just fine in the US c. 1930sFunneling money into the same broken system on the contingent that they rip out huge chunks of the machinery, and above all on basis that they will be ...
Orgasmatron138: Thunderpipes: Within a decade, we will be in a worse situation than Greece. We can handle a bigger debt ratio, but eventually even the mighty USA cannot handle 200%, 300% debt to GDP.I know libs don't care, but when Obama says he is saving us a trillion dollars over 10 years, yet still has trillion dollar deficits, we aren't really saving money.We need a 500 billion dollar surplus a year to even begin to pay down the debt. With each year of trillion dollar deficits, this gets way worse. At the end of his second term, interest payments on the debt alone will be in the 500 billion dollar range. Think about all the dough being thrown away.....Something drastic needs to happen. The country is bleeding profusely and we just keep putting on band aids and giving transfusions. We need to fix the damage.We care, that's why we're wiling to pay more taxes.Anyway, I know oversimplified solutions aren't really the answer, but Warren Buffet made a good point when he talked about fixing the deficit. He said "You just pass a law that says that anytime there's a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election. Yeah. Yeah. Now you've got the incentives in the right place, right?"Fixing the deficit won't solve the problem overnight, but it will stop the bleeding. That has to be step 1, but even that won't happen until people really put Congress' feet to the fire.If either party came up with a perfect solution that would magically solve our problems overnight, the other party would still block it because that party wouldn't want the other to be successful. That's the team mentality that our political process is reduced to.
Mach10: Right-wingers can knee-jerk all they want about the cost of social assistance, but the reality has been borne out again and again. Put $20 into the pocket of a rich guy, and it goes right to the bank. Put $20 in the pocket of a working-class citizen, and it goes right into the cash register of your local store.
Mach10: Put $20 into the pocket of a rich guy, and it goes right to the bank.
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