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Culture Wars Era - is it moving into its final phase?
#90
(01-29-2017, 10:48 AM)David Horn Wrote:
(01-27-2017, 01:25 PM)Warren Dew Wrote:
(01-27-2017, 08:21 AM)David Horn Wrote: Crowding out, which is your argument, has a tell tale sign: high and rising interest rates.  If money is in short supply, then the demand triggers rate hikes.  In other words, if you want my money, you'll have to pay me for it!

That didn't happen.  It's only starting to happen now, and it's still mild by historical standards.

Have you ever considered checking for actual facts before making your false assertions?  Or is using facts too much of an alternative method for progressives?

[Image: chart_interest_rates.top.gif]

Rising interest rates, exactly when you would expect from the private sector being crowded out by deficits from the bailouts, "stimulus" bill, and other ill considered spending of the time.

Unless business borrowing consists primarily of credit cards, this is not important.  In fact, higher credit card rates are based solely on the demand side, and tend to show that the economy is reasonably healthy.  For business borrowing, the Federal Funds rate is a better measure, because it marks the underlying cost to banks of money they lend.

Small businesses actually do use credit cards heavily.  More importantly, though, consumer borrowing matters too:  higher deficits pushing credit card interest rates higher results in less consumer spending, a classic example of government spending crowding out private spending.

The federal funds rate is a poorer measure since, as X_4AD_84 pointed out, it was artificially depressed during this period due to capital regulations.  Those low rates were only available to the government.
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RE: Culture Wars Era - is it moving into its final phase? - by Warren Dew - 01-29-2017, 02:03 PM

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