Who are you voting for in 2012?

[Abdel]

You confuse economic growth with a growth in production.

Don't know if you're serious but this is Economic illiteracy.

 

[euroazn]

Let me correct this fallacy that we often hear.

Economic growth brings prices DOWN.

The industrial revolution saw the biggest economic growth ever, and guess what happened? Prices went DOWN.

The lesson here is:

Real economic growth brings prices down (production goes up = supply goes up = prices go down)

Phony economic growth (aka bubble economy like the US economy in the last 20-30 years) causes inflation.

Sure, supply has to go up in economic growth, but demand should be going up as well, as people's standard of living increases.

 

[boneil]

Alexei, as far as tax cuts go: http://en.wikipedia.org/wiki/File:U.S._Federal_Tax_Receipts_as_a_Percentage_of_GDP_1945–2015.jpg

Interesting graph. It's funny, because right around that trough in 2002-2003 some major cut was made to something, I forget what...

Anyways, regardless of the tax rates, revenue as a percentage of GDP doesn't really move much. 1950-1963 saw the top tax bracket pay an income tax of over 90%! Now I haven't done all that much looking into this, so please correct me if I'm wrong here, but I don't believe raising taxes would be a very good idea (especially in this climate).

Funny too how the government (and not just lack of regulation) is left out of the housing crisis debacle. If there wasn't a government directive to "improve" home ownership rates for the poor, the crisis likely wouldn't have been nearly as bad. It's odd that people like Franklin Raines can come to hopkins and not get asked serious questions, not only about the various scandals involving him, but also about his improvement policies.

 

[Abdel]

To my friend Anthony:

Return of the Gold Standard as world order unravels:

http://www.telegraph.co.uk/finance/...he-Gold-Standard-as-world-order-unravels.html

''Step by step, the world is edging towards a revived Gold Standard as it becomes clearer that Japan and the West have reached debt saturation. World Bank chief Robert Zoellick said it was time to "consider employing gold as an international reference point." The Swiss parliament is to hold hearings on a parallel "Gold Franc". Utah has recognised gold as legal tender for tax payments. ''

 

[IlyaKEightSix]

Why exactly is gold, or any other commodity being used as a store of value? Because there's a finite limit of it? I would disagree with that notion. Yes, central banks can print money, but at the same time, isn't money a reflection of a person's or a society's output? If people keep producing, why must that be a zero sum game?

 

[TRobinson]

Why exactly is gold, or any other commodity being used as a store of value? Because there's a finite limit of it? I would disagree with that notion. Yes, central banks can print money, but at the same time, isn't money a reflection of a person's or a society's output? If people keep producing, why must that be a zero sum game?

I would think that the use of fiat money would be more opposing to your common sense than a commodity based system. Clearly there is a non-monetary demand for commodities that does not rely upon a government decree and is instead derived from functionality. The use of commodities as a store of value and a medium of exchange is intuitive; the reason for a given currency’s existence might require some deeper thought (regression theorem).

You can hardly call the gold standard a zero-sum game if you look at the amount of gold being produced by China or SA today. Although technically there is a finite amount of gold on our planet, I doubt any of us will witness the day that the bottom of the barrel is hit and all sources of gold production dry up. Just to emphasise my point, imagine the flow of new (usable) gold that would ensue given the scenario in which the US adopts a gold standard.

The main point most supporters of a commodity based medium of exchange make is that the relative ease with which nations can produce a fiat currency is often an incentive in itself and this ability to create value “out of thin air” makes it very hard to maintain responsible fiscal policy. A commodity based medium would effectively regulate fiscal policy through cost of production.

 

[Abdel]

It ain't money if I can print it.

=)

 

[Lyosha]

you can't print it. You're not the US mint.

 

[Abdel]

Generally speaking, I think some countries are way too big.

When you have 50% of the population that wants a big governement and the other 50% that wants a small governement, I think the
ideological difference is so great that it is smarter to separate the country.

There is no point in arguing during 40 years of your life to try to convaince the other side. Let's just separate so everyone can be happy.

And this proves my point, CNN Poll conducted today,

 

[Anthony DeAngelis]

50% of the people in this country pay no Federal taxes, yet enjoy Federal benefits. I have no doubt that half the country could careless about the budget since they gain everything and pay nothing.

 

[Anthony DeAngelis]

How do you figure that one?

 

[Anthony DeAngelis]

http://people-press.org/2011/05/04/section-4-the-recession-economic-stress-and-optimism/

Middle of the page you see an income breakdown.

 

[boneil]

yes, but in a twist of irony my understanding is that those people tend to vote republican...

I'm going to assume he wryly meant to refer to the tiny minority of republicans that can afford to spend tons on accountants to find tax loopholes, hide money "legally" offshore, etc. There's also a decent percentage of the ultra rich that are democrats too, btw.

Obviously the poor tend to vote democrat, I don't think anyone would deny that.

 

[Abdel]

In the meantime,


Carney: Economy Has "Vastly Improved" Since Obama Was Sworn In

http://www.realclearpolitics.com/vi...proved_since_obama_was_sworn_in-comments.html

Twilight zone episode?

 

[bigbadwolf]

Twilight zone episode?

The bozo is White House Press Secretary -- that's what you'd expect him to say.

 

[Lyosha]

Yeah, I mean come on, remember when Iraq was an imminent threat and had WMDs?

 

[Anthony DeAngelis]

P.S. Anthony - about that data you presented - the "disaffecteds" would be the tea party members (since currently a Democrat is President...), correct?

Not sure if Tea Party would be disaffected, at least according to the studies standards. I would think voters who don't identify with either party and don't vote. Tea Party voters are mainly more ideological Republican and would vote Rep if left with no other option. Disaffected to me means someone who is apathetic.

 

[Abdel]

Ron Paul's supporters form super PAC

http://content.usatoday.com/communi...aul-presidential-race-super-pac-/1?csp=34news

Good thing with these super PAC is, there isn't a $2500 donation limit.

 

[Abdel]

Ron Paul interview back in 1988, this guy is amazing.

 

[nycquant]

It isn't gonna be easy for Obama in 2012. With high unemployment rate and the economy in a chaotic state, it is no wonder that his approval ratings have hit all time low. Even hardcore democrats are disgruntled with the way he is running things. He needs another bin-laden like operation to get his ratings back on track. I am reminded of the movie 'Wag the Dog'.. ( who knows, probably bin-laden operation is one such thing :P )