Stocker

As I was pulling a Metro cart around the warehouse at work, a co-worker who was supposed to be pushing jumped on. I felt the load get way heavier and saw he was a'riding and he said "WHEEEE!" I jumped on too, and said as the cart almost immediately came to a halt "WHEEEEEEeeee. . . awww Communism fail!" He LOL'd and started pushing again.



The problem with Socialism/Communism/US Democrat/Republicanism is eventually you run out of other peoples' money. How hard is it to understand this graph? This is why we need term limits. Two years/Six years depending on the House you got elected to, then you can never serve again. Giving away money we don't have so you can get re-elected leads to stuff like this being the official policy of our nation, and then when the lines cross and we have become Greece and nobody can bail us out because we ARE the source of bailout funds, WTF do you think is going to happen?!





http://globaleconomicanalysis.blogsp...n-deficit.html

wheel_of_steel

With increased government spending, that cash flows through the economy and generates wealth in most sectors. Once the economy is in an upswing, the government can start raising taxes and collecting revenue. THEN public spending can be (and usually is) pared off. On what basis does Mish's graph make predictions for government spending in 2080? A prediction of spending in 2020?



What I would like to see is how much of the current deficit is from private and short term debts.

Stocker

Wait, did you just say it is better to have government take a slice off the top before giving tax revenues to the most well-connected union shop for higher prices, than to have private industry do (fill in the blank) directly for the lowest price? In what universe does that make sense? It reminds me of N. Pelosi saying unemployment insurance puts $2 into the economy for every $1 of payout. Let's put everybody on unemployment and double GDP overnight!!!1!



Which leads right back around to my story . . .

Red Raspberry

Nonsense the Fed is buying our debt so the Fed issues credit to the US and then buys the bonds issued with that same credit. It's like issuing your own credit card. I can't see a thing wrong here.......



Fed Buying 61 Percent of US Debt

wheel_of_steel

Public health vs private health:



Public health allows anybody to access it for 'free', every tax payer has equal right to it and is charged according to their income.

Private health makes the poor or those unable to work (even due to sickness) to figure out their own problems, and allows the rich a higher 'right to life'.



Public transport vs... private transport?



Look at the tokyo underground system, and how people there don't even need cars. Look at the shoddy public transport system here that requires people to have a car if they want to work, socialise, or recreate.



Public utilities vs private utilities



Public-owned infrastructure suppliers have no interest in making profit from their users, they solely exist to provide the best service possible; private operators are in there to make money and only provide your service on the side. Privately owned infrastructure suppliers tend to monopolise and operate purely for profit - this is an excellent case of what has happened in my city alone. The gov't privatised the power supply in the mid 2000s, and broke it up into four seperate companies that were supposed to compete. They slowly managed to consolidate into two large companies that can (and do) charge whatever they want for power.



Public defence vs private defence

Public policing vs private policing



Let's get serious guys. On that note, welfare isn't reserved for crack smoking hillbillies - it is a legitimate way of stopping the ultra poor from turning to desperate measures in order to survive.

Red Raspberry

^^^^



Spoken like a well breed and educated USA statist.

wheel_of_steel

Well, although public spending has great benefits to society, you can't just throw cash around willy-nilly. When the economy is strong you gotta increase revenue and reduce spending - it is a regulatory device that just happens to have pleasant side effects.

Red Raspberry

I'm all for the reducing spending but not for the increase revenue unless you mean eliminate tax deductions.



1/3 of our federal budget is in propping up a military empire figting wars against unknowns in defense of the petrol dollar and at the additional cost of elimination of our liberties..

wheel_of_steel

Very valid points. I agree with you there - there are always new taxes and fees being established, but none are ever abolished.





Don't even get me started on GST - goods and services tax. It was meant to REPLACE a bunch of different duties and levies with a general tax on all transactions, which is fine for simplicity. They implemented GST, then failed to remove the levies and duties. Now we are stuck with both. Not only that, but then they had to hack up the simplicity of GST by making all sorts of exemptions because they didn't remove the original levies and duties... but they promised they wouldn't.





The latest wacky idea is the carbon tax - it is about to be unleashed on the public... just...

HotBlue02

Carbon tax is the disguise or smoke screen if you will for a one world bank in my opinion. And as far as the (un)Federal Reserve goes Its a thorn in the side of America, A private bank owned by private individuals, a pyramid scheme in a way. For every dollar are Treasury has printed up by issuing a bond(right term?) to the Federal Reserve, are government (or really we the people) have to pay back that dollar plus interest. Were does that interest come from? We the people were sold out in 1913, and again in 1933, The New Deal made you a debt slave 4 life.