| American Politics Forum for political discussion that applies specifically to the United States. |
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| Does High Public Debt Consistently Stifle Economic Growth? The R&R Paper Critique http://www.peri.umass.edu/fileadmin/...-350/WP322.pdf This paper has been going around the economic blocks the last few days. The study that was used to determine that having >90% GDP debt caused grave issues in economic growth, one of the fundamental cases for austerity, turned out to be false. The link above is a PDF critique of the paper. Highlighted amongst the errors of the Reinhart/Rogoff paper was a spreadsheet coding error and unconventional weighing of summary statistics. The two professors that created the paper have as far as I know, at least admitted to the spreadsheet coding error today. The growth for countries with a >90% GDP ratio according to the R&R paper would slow from 2.8 to -0.1%, whereas the critique counters by saying the growth only slows from 3.2 to 2.2% and what one can conclude from the paper is that debt is a problem, but hardly as much a problem as unemployment. Anyone that had used these foundations to predict some gigantic crash in the very near future turned out to be mistaken. In short, I guess it doesn't mean that we should ignore the budget entirely, but the DEFCON 1 flag that conservative media has put up on us the last couple of years was a false flag. A lot of people have got to be feeling quite duped today. Myself included. __________________Your friendly neighborhood Independent populist. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. |
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Originally Posted by Harpuia  http://www.peri.umass.edu/fileadmin/...-350/WP322.pdfIt also brings up the theory that nobody really understand the economy.  The austerity approach sounds seductive, but it has some significant side effects, like unemployment, rioting in the streets and civil war. Excessive unemployment tends to negate some of the positive aspects of austerity.
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| You do realize that we have to pay interest on the debt... Seriously, cutting spending and trying to bring down the debt would ultimately free up money for things like education, because we no longer have to use said money on paying interest on the country's credit card. __________________Proud Autistic Conservative To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Fox News is being branded by the left as a network of ?right wing extremists.? Since when does daring to question the policies and motivations of government define extremism? Read more: |
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| The first misunderstanding I made from the report is they're saying that debt has NO negative effect. It's not. They're saying it's a negative effect, just not even close to as bad as originally researched. So balancing the budget is still an issue. It's the belief to hide in commodities like gold and silver and other precious metals as conservative media had thrown around for years is what got broken down. __________________Your friendly neighborhood Independent populist. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. |
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Originally Posted by GarfieldJL You do realize that we have to pay interest on the debt...Austerity from an economic perspective makes far more sense during strong economic times not during recessions or recovery. To put it personal finance terms. If you loose your job it's not uncommon to run on some debt in order eat and such. But when you get a job you pay that debt down. The current Republican mindset is reversed. They want to pay down debt when the loose their job at the expense of eating and such and the run up their debt when they have a job. The problem with the debt we have now is not the current deficits. The problem is that they are being added to debt that should have been paid down during good times.
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Originally Posted by GarfieldJL You do realize that we have to pay interest on the debt...That assumes no side effects of cutting spending. Serious cuts get into putting people out of jobs. Most big government jobs are done by civilians, not people directly on the government payroll. To focus only on one aspect misses the context. That's why a realistic budget deals with revenue as well as spending.
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Originally Posted by cow451
I think this song could sum up the situation... __________________Proud Autistic Conservative To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Fox News is being branded by the left as a network of ?right wing extremists.? Since when does daring to question the policies and motivations of government define extremism? Read more: |
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| Politicians have a habit of deliberately cutting whatever is necessary like policemen and firemen in order to make cuts look as horrible as possible, instead of cutting the stupid stuff. I felt the song was appropriate. __________________Proud Autistic Conservative To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Fox News is being branded by the left as a network of ?right wing extremists.? Since when does daring to question the policies and motivations of government define extremism? Read more: |
Source: http://www.christianforums.com/t7739779/
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