Is This The 1970s All Over?

[Flopper]

It is absurd to believe that employment should have returned to previous levels after the worst recession since the great depression. Anyone who knows anything about economics knows that employment is last thing to recover after a recession. There is nothing the president or congress could have done that would have brought unemployment down significantly. Fiscal stimulus by the government has only a temporary effect of bolstering consumer spending and confidence. Cutting taxes from the current low levels, would have little effect on business expansion. Cutting interest rates would have even less impact.

This recession as all recessions in the past must simply run their course. Business profits are up and businesses are piling up cash. Many of these businesses were near bankruptcy 18 months ago and are not going to significantly expand regardless of tax rates until they are confident that the excesses in the economy have been shaken out and consumer confidence is on the mend. All of this takes time. Government action, whether it be spending, cutting spending, cutting taxes, or raising taxes is only one factor that effects the economy. No action of the government has proven itself effective in turning around the economy consistently.

In the terrible recession after 2001 the unemployment rate soared to 5.99% and Democrats were all over Bush. Within 2 years it was back down under 5%. So of course it is reasonable for things t turn around in 24 months.
They are not going to expand because this is the most anti-business administration since FDR.

There is no comparison between the current recession and the 2001 recession. The cause of the 2001 session was primarily high interest rates coupled with a major sell off in computer stocks.

The cause of the 2008 recession was structural. The entire home mortgage industry was operating under the premise that there would always be a bigger sucker to buy mortgages of unknown quality. Much of the banking industry was being operated more like a casino than a bank. The housing market was ridiculously overinflated due to a 10 year boom in real estate prices.

Unemployment in the 2001 recession rose 16%. Unemployment went up over 100% in the 2008 recession. The country does not recover from a recession of this magnitude in 2 years regardless of the actions of the president or congress.


Causes of Economic Recession - Why Our Economy Is in a Recession Now - Causes of 2001 Recession

 

[uscitizen]

Bull crap.

Post links or shut the fuck up.

No and NO!

 

[skookerasbil]

Reading some of the posts on this link makes me laugh....................


The liberal hyper-partisans fall all over themselves trying to prop up whats going on with this president and this country right now but, unless they are mental cases ( probably true in a few cases ), they know they are in deep doo doo up to their eyeballs.

 

[The Rabbi]

Bull crap.

Post links or shut the fuck up.

No and NO!

Right.
Because you can't because you are simply wrong. Remember McCain talking of suspending his campaign until the crisis was over? That was the summer before the election in Nov. No one thought it would be solved by November.
You are full of shit.

 

[The Rabbi]

Reading some of the posts on this link makes me laugh....................


The liberal hyper-partisans fall all over themselves trying to prop up whats going on with this president and this country right now but, unless they are mental cases ( probably true in a few cases ), they know they are in deep doo doo up to their eyeballs.

There is no question there.
The Dums can spin this that it is the GOP's fault from today to tomorrow. But the public knows Obama has been in office almost 2 years and things are no better. He can blame anyone he wants but the public simply wants to know what he's done to make things better. And since they are not better, he's done nothing. And Congress, which has struggled with unpopular legislation even while people are out of work, has done even less.

 

[topspin]

inflation is less of a worry right now than deflation and GDP is growing over 2%.
But don't stop the whabulance from the conservatards it's hillarious and hacktastic.

 

[uscitizen]

Do you know what stagflation is? Here's a hint: the "flation" part refers to inflation. During the Carter years (starting with his first full month in office), no single month ever had an inflation rate lower than 5.91%. The inflation rate climbed virtually on a monthly basis until it was in the double digits.

Today, inflation is very, very low (it was negative last year).

The top marginal tax rate is half of what it was in throughout the 1970s (70%). If EGTRRA expires, it would still be under 40%.

The economy sucked under Carter, with massive job loss in key industries. It sucks under Obama, with massive job loss in key industries.
A distinction without a difference. I stand by what I wrote.

How much of our economy deopended on consumer spending under Carter and how much does now?

but one thins is comon both had massive oil price increases help to trigger them.

 

[The Rabbi]

Do you know what stagflation is? Here's a hint: the "flation" part refers to inflation. During the Carter years (starting with his first full month in office), no single month ever had an inflation rate lower than 5.91%. The inflation rate climbed virtually on a monthly basis until it was in the double digits.

Today, inflation is very, very low (it was negative last year).

The top marginal tax rate is half of what it was in throughout the 1970s (70%). If EGTRRA expires, it would still be under 40%.

The economy sucked under Carter, with massive job loss in key industries. It sucks under Obama, with massive job loss in key industries.
A distinction without a difference. I stand by what I wrote.

How much of our economy deopended on consumer spending under Carter and how much does now?

but one thins is comon both had massive oil price increases help to trigger them.

About the same, actually.
But this comes up a lot. "Stimulating consumer spending" will do nothing to help the economy. If some guy runs out and buys an Ipod how is that adding to our store of wealth? It isn't. It isn't like a business going and buying a new software system so their inventories can be managed more efficiently. Or new equipment that will help productivity. And thsoe are the things that spur growth.

 

[editec]

If this is the 70's how come I'm not snorting cocaine with my lawyer and doctor and the other yupppies??

Rabbi, you don't know doodlesquat about the 70s.

 

[The Rabbi]

If this is the 70's how come I'm not snorting cocaine with my lawyer and doctor and the other yupppies??

Rabbi, you don't know doodlesquat about the 70s.

Because your kids are doing crack and meth with their computer-programming buddies and listening to techno.

 

[uscitizen]

The economy sucked under Carter, with massive job loss in key industries. It sucks under Obama, with massive job loss in key industries.
A distinction without a difference. I stand by what I wrote.

How much of our economy deopended on consumer spending under Carter and how much does now?

but one thins is comon both had massive oil price increases help to trigger them.

About the same, actually.
But this comes up a lot. "Stimulating consumer spending" will do nothing to help the economy. If some guy runs out and buys an Ipod how is that adding to our store of wealth? It isn't. It isn't like a business going and buying a new software system so their inventories can be managed more efficiently. Or new equipment that will help productivity. And thsoe are the things that spur growth.

Increasing productivity means less jobs. Les jobs = less spending in a consumer spending based economy.

Why keep trying the same old things over and over? The game has changed.

 

[topspin]

Shut your pie hole Rabbi, I own apple stock and Ipods get teenagers pussy.

UScitizen, gramps when buggy whip manufaturers go under the smart kids let go invent ipads or apps for them. It's only a zero sum game to the old and feeble.

 

[The Rabbi]

How much of our economy deopended on consumer spending under Carter and how much does now?

but one thins is comon both had massive oil price increases help to trigger them.

About the same, actually.
But this comes up a lot. "Stimulating consumer spending" will do nothing to help the economy. If some guy runs out and buys an Ipod how is that adding to our store of wealth? It isn't. It isn't like a business going and buying a new software system so their inventories can be managed more efficiently. Or new equipment that will help productivity. And thsoe are the things that spur growth.

Increasing productivity means less jobs. Les jobs = less spending in a consumer spending based economy.

Why keep trying the same old things over and over? The game has changed.

I am sure you will be relieved to know this was debunked over 50 years ago. If what you say is true we would have scads of unemployed farmers sitting around generation to generation because farming has become many times more efficient than it was in the 1880s.

 

[Toro]

Increasing productivity means less jobs. Les jobs = less spending in a consumer spending based economy.

Why keep trying the same old things over and over? The game has changed.

All long-term economic growth is a function of productivity growth. Productivity decreases costs, freeing up resources and time for increased consumption and investment. There was no economic growth before productivity growth.

 

[Mr. Shaman]

About the same, actually.
But this comes up a lot. "Stimulating consumer spending" will do nothing to help the economy. If some guy runs out and buys an Ipod how is that adding to our store of wealth? It isn't. It isn't like a business going and buying a new software system so their inventories can be managed more efficiently. Or new equipment that will help productivity. And thsoe are the things that spur growth.

Increasing productivity means less jobs. Les jobs = less spending in a consumer spending based economy.

Why keep trying the same old things over and over? The game has changed.

I am sure you will be relieved to know this was debunked over 50 years ago. If what you say is true we would have scads of unemployed farmers sitting around generation to generation because farming has become many times more efficient than it was in the 1880s.

Yeah.....efficiency (in eliminating as many family-farms as possible!)....that's what was needed..... ​

 

[The Rabbi]

Increasing productivity means less jobs. Les jobs = less spending in a consumer spending based economy.

Why keep trying the same old things over and over? The game has changed.

I am sure you will be relieved to know this was debunked over 50 years ago. If what you say is true we would have scads of unemployed farmers sitting around generation to generation because farming has become many times more efficient than it was in the 1880s.

Yeah.....efficiency (in eliminating as many family-farms as possible!)....that's what was needed..... ​

Right. Because we'd rather have an ECONOMY that looks like KENYA,right?

You are truly a douche-and-a-half.

 

[B. Kidd]

I believe this was Rabbi's 'stagflation' prediction thread from 3 years ago to this month.

 

[B. Kidd]

Do you know what stagflation is? Here's a hint: the "flation" part refers to inflation. During the Carter years (starting with his first full month in office), no single month ever had an inflation rate lower than 5.91%. The inflation rate climbed virtually on a monthly basis until it was in the double digits.

Today, inflation is very, very low (it was negative last year).

The top marginal tax rate is half of what it was in throughout the 1970s (70%). If EGTRRA expires, it would still be under 40%.

You have to understand, Rabbi picked up the word stagflation and uses it over and over again assuming it will stick. In my lifetime, we have never had a lower inflation rate than we do now. Ask Social Security retireeshow they liked their adjustment for inflation last year

But Rabbi is all knowing. We don't have any inflation now....but the evil Obama policies will cause stagflation next year....or in three years....or in ten years....or

Someday the Rabbis prophecy will come true

Hey RW. Looks like Rabbi's prophecy is only taking three years.

 

[The Rabbi]

It is the 1970s, sort of.
History repeats itself, first as tragedy, then as farce.
Not sure which one this is.

 

[Moonglow]

We had high inflation in the early 80's also, we had techno(from Europe) and rap in the seventies, not to mention punk rock.