11-17-2016, 04:43 PM
(11-17-2016, 04:04 PM)Warren Dew Wrote: I suspect I'm the only one who actively wants more debt, because I think it's necessary to the ideal handling of the demographic slowdown. Japan has shown that a debt level of 3x GDP is sustainable and even good, given that the demographic slowdown causes exceptionally low or even negative natural interest rates. We're far below that.
I suspect Galen wants to reduce spending to the point that taxes can also be reduced while reducing the deficit, though I'd be interested in hearing from him.
I'd also be interested in hearing from Classic Xer.
Are you insane? Japan is working on their third lost decade. No doubt someone will tell me that Fukishima is responsible for their current problems but this has been going on since about 1990. It will no doubt be someone who, when a Hurricane next levels a city, says that it is good for the economy because of the rebuilding.
Japan has been following the Keynesian prescription since the early nineties and it has gotten them nowhere. Abenomics is Keynesianism on steroids. The only reason their debt appears sustainable is because of the artificially low interest rates caused by the bank of Japan.
The Harding's response to the Depression of 1920 violated all of the rules of modern macroeconomics and it only lasted eighteen months, typical of recessions prior to the Great Depression. Hoover and Roosevelt borrowed, taxed and spent like most modern economists say should be done and the Depression dragged on for fourteen years. The only reason the Depression didn't resume is because FDR was dead and Truman vastly reduced spending after World War II. Keynesian economists were predicting that the Depression would resume and were absolutely shocked when it didn't. 1946 was one of the best years ever in terms of GDP. Look up Robert Higgs to understand why the GDP measurements during the war years are completely bogus. Hint: It involves the US being turned into a command economy.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises