How to fix the economy
Commy
Posts: 4,984
so you can bailout capitalism. say that's the goal.
why are they printing more money to fix the problem? or borrowing? isn't that just putting off the inevitable? why not shift that huge amount that goes into the military industrial complex into programs that matter? or into companies that are too big to fail?
the US accounts for over 50% of the world's entire military spending, I think we should move some of that over to social programs and domestic issues and into creating a production based economy.
why are they printing more money to fix the problem? or borrowing? isn't that just putting off the inevitable? why not shift that huge amount that goes into the military industrial complex into programs that matter? or into companies that are too big to fail?
the US accounts for over 50% of the world's entire military spending, I think we should move some of that over to social programs and domestic issues and into creating a production based economy.
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With 10 seconds of research, wikipedia says that "the United States government is currently spending at the rate of approximately $1 trillion per year for all defense-related purposes."
Say if you cut a few hundred billion off of that, I can't imagine the impact on suppliers and manufactures, plus the civilian job losses and base closures.
While the money could probably be better spent elsewhere, I would guess that huge military cuts would cause us to loose many thousands of jobs (maybe hundreds of thousands?) and decimate towns that are built around military bases or huge military industries. Lockheed Martin alone employees 140,000 people, with 95% of their revenues coming from defense contracts (from wiki).
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
It worked then and we need it now.
And Prostitution.
world war 2 ended the great depression, not building roads....
How true...
The economy could have been fixed or at least started in that direction by giving the money for the bailouts to the American people instead of banks. You give the money to the people with the stipulation that it can ONLY be used to pay off debt (credit or mortgage). That way, people pay off debt, have more money to spend and thus stimulate the economy (since our economy is based on consumerism) and at the same time, banks get the money they were worried about not having.
Yeah it's pretty basic and full of holes but I don't think it would have been any less effective than going further into debt to solve the problem of debt.
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But how do you do that? There is no way to monitor what people use it for.
And in our society, a lot of people are in debt because of bad financial decision in the first place. I can't see how giving them more money would help fix the situation.
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
Paying off debt is VERY BAD for our economy.
It is one of the highly paradoxical stupidities of a fiat economy fixed around a debtbased currency.
Paying off debt (private or public) is equivelant to REMOVING money from the system.
NOT what "they" want to see happening here.
That is why they are inflating, printing money like there is no tomorrow.
The system is DESPERATELY trying to fend off a DEFLATIONARY depression.
They will take INflation ANY day of the week over DEflation.
If you want to understand in a quick analogy WHY deflation can be so bad (many reasons, but here is one) think about this:
In an INflationary environment, everyone knows that debtors make out because the availability of cash has INcreased, dollars become LESS valuable, and it is therefore (theoretically) EASIER to pay off your debts.
BUT WHAT HAPPENS IF THE MONEY SUPPLY IS SHRINKING?
Well reverse everything above and you get:
In a DEflationary environemnt, debtors LOSE out because the availability of cash has DEcreased, dollars become MORE valuable, and it is therefore (theoretically) HARDER to pay off your debts.
You can read a good summary of a REAL LIFE EXAMPLE of this in Murray Rothbard's The Panic of 1819 where (oh around page 17 PDF) it is VERY clear that deflation causes the public at large to SUFFER GREATLY. Debt defaults skyrocket, and destitution becomes rampant.
Anyhow.
I hear you, in principle, Chromiam, just in practice that life fucks us in the face on this account.
:(
If I opened it now would you not understand?