The Confirmed Insanity of Austerity

[Lakhota]

 

[Mr. Shaman]

The funny part is that Chavez reduced poverty with his "socialism" while Republicans and their cut everything austerity and lower taxes BS have produced nothing.

There's a good reason, for that....and, we have the "Nate Silver", required, to rub "conservatives"' noses IN their pile o' bullshit!!!

Thomas Herndon;
MUCH Smarter Than The Average "conservative"

 

[Crackerjaxon]

Printing more money and employing people in non-productive "jobs" will produce the illusion of wealth for a while, but it can't possibly work long term.

Robbing Peter to pay Paul does not produce any gain.

 

[editec]

Clintons economy was just left overs from Reagan.

based upon the lefts "logic" that it's still Bushs fault.

Reagan? Oh, you mean Reagan's Voodoo economics? Is that why George H.W. "Read My Lips" Bush had to raise taxes - which likely cost him a 2nd term?

Reaganomics lead to 25 of record prosperity. A historical record.

Kid, you don't know what you're talking about and every time you try to make shit up you lose more credibility.

1980 recession Jan–July 1980 6 months 4 years 10 months 7.8%
(July 1980) −2.2% The NBER considers a short recession to have occurred in 1980, followed by a short period of growth and then a deep recession. Unemployment remained relatively elevated in between recessions. The recession began as the Federal Reserve, under Paul Volcker, raised interest rates dramatically to fight the inflation of the 1970s. The early '80s are sometimes referred to as a "double-dip" or "W-shaped" recession.[30][40]

Early 1980s recession July 1981 – Nov 1982 1 year4 months 1 year 10.8%
(Nov 1982) −2.7% The Iranian Revolution sharply increased the price of oil around the world in 1979, causing the 1979 energy crisis. This was caused by the new regime in power in Iran, which exported oil at inconsistent intervals and at a lower volume, forcing prices up. Tight monetary policy in the United States to control inflation led to another recession. The changes were made largely because of inflation carried over from the previous decade because of the 1973 oil crisis and the 1979 energy crisis.[41][42]

Early 1990s recession July 1990 – Mar 1991 8 months 7 years
8 months 7.8%
(June 1992) −1.4% After the lengthy peacetime expansion of the 1980s, inflation began to increase and the Federal Reserve responded by raising interest rates from 1986 to 1989. This weakened but did not stop growth, but some combination of the subsequent 1990 oil price shock, the debt accumulation of the 1980s, and growing consumer pessimism combined with the weakened economy to produce a brief recession.[43][44][45]

Early 2000s recession March 2001– Nov 2001 8 months 10 years 6.3%
(June 2003) −0.3% The 1990s were the longest period of growth in American history. The collapse of the speculative dot-com bubble, a fall in business outlays and investments, and the September 11th attacks,[46] brought the decade of growth to an end. Despite these major shocks, the recession was brief and shallow.[47] Without the September 11th attacks, the economy might have avoided recession altogether.[46]

Great Recession Dec 2007 – June 2009[48][49] 1 year
6 months 6 years
1 month 10.0%
(October 2009)[50] −5.

Now some of us LIVED through these recessions as working adults, so do please educate yourself.

 

[Mr. Shaman]

Eviscerating "conservative-absolutes";
Fun for the ENTIRE FAMILY!!!

. . . . . . ​

The Austerity Movement; A Laughingstock

"Incidentally, this is exactly what Paul Krugman predicted last week would be the significance of Herndon's paper:​

"The point is that the next time Olli Rehn, or George Osborne, or Paul Ryan declares, sententiously, that we must have austerity because serious economists (i.e., not Krugman and friends) tell us that debt is a terrible thing, people in the audience will snicker — which they should have been doing all along, but now it has become socially acceptable."

 

[Truthmatters]

Think of how easy it would be ti run this country if people accepted facts?

why does the right cling to proven historically failed ideas?

 

[LogikAndReazon]

Print , borrow, and spend the way to prosperity !

 

[Mr. Shaman]

4/18/13

28-Year-Old Grad Student;
SHOOK The Global Austerity Movement!!​

"What Herndon had discovered was that by making a sloppy computing error, Reinhart and Rogoff had forgotten to include a critical piece of data about countries with high debt-to-GDP ratios that would have affected their overall calculations. They had also excluded data from Canada, New Zealand, and Australia — all countries that experienced solid growth during periods of high debt and would thus undercut their thesis that high debt forestalls growth.

The paper cut to the core of a debate that has been dividing economists and politicians for decades. Fans of austerity believe that governments should cut spending in order to grow their economies, while anti-austerians believe that government spending in times of economic duress can create growth and reduce unemployment, even if it increases debt in the short term. What Herndon et al. were claiming, in essence, was that the pro-austerity movement was relying on bogus information."

Time for a re-set, Teabaggers!!!

 

[Mr. Shaman]

April 24, 2013

Pro-Austerity Study:
DEBUNKED!!!​

"In 2010, two Harvard University economists, Kenneth Rogoff and Carmen Reinhart, conducted a study called Growth in a Time of Debt. The report found that a nation whose debt rises above 90 percent of its gross domestic product would experience negative growth.

Recent findings by Thomas Herndon, an economics doctoral candidate from the University of Massachusetts-Amherst, reaffirmed the fallibility of the study. Herndon had access to the original Excel spreadsheets that Reinhart and Rogoff used to compute their data. He found that consequential information was miscalculated and omitted. When computing the math properly, it was found that, even with a debt above 90 percent of GDP, there was still economic growth."

 

[Truthmatters]

Even Stephen Colbert is piling on Reinhart-Rogoff


Reinhart and Rogoff have also been shown to have used bad numbers for their claims on austerity

 

[Wacky Quacky]

I think the problem with the austerity argument is that both sides automatically equate it to cutting safety nets, that doesn't need to be the case.

What about closing foreign military bases?
What about returning us to pre-war level spending?
What about eliminating benefits to elected officials (at least until they fix the problem)?
What about eliminating redundant departments like the DHS?

All of the doom and gloom over cutting safety nets is just fear mongering. We don't need to cut safety nets to enact austerity measures.

If republicans would stop screaming about moochers, and democrats would stop fear mongering over spending cuts, we might be able to get some actual fiscal responsibility in Washington.

 

[Lakhota]

Now the truth about those flawed austerities studies is finally being told.

Influential Reinhart-Rogoff Pro-Austerity Research Riddled With Errors: Study

Greg Mankiw On Reinhart-Rogoff: Hey, Everybody Makes Mistakes

 

[whitehall]

If you think austerity causes unemployment you are a hopeless neo-socialist. Government jobs do not grow the economy. They only transfer wealth from one segment of society to another. Sooner or later the taxpayer bubble runs out.

 

[Lakhota]

If you think austerity causes unemployment you are a hopeless neo-socialist. Government jobs do not grow the economy. They only transfer wealth from one segment of society to another. Sooner or later the taxpayer bubble runs out.

Wow! Aren't you a little embarrassed to put that in writing? Apparently you're not an FDR fan.

 

[whitehall]

If you think austerity causes unemployment you are a hopeless neo-socialist. Government jobs do not grow the economy. They only transfer wealth from one segment of society to another. Sooner or later the taxpayer bubble runs out.

Wow! Aren't you a little embarrassed to put that in writing? Apparently you're not an FDR fan.

I am not an FDR fan. WW2 bailed FDR out of the "great depression" and I shudder to think about what cataclysmic event the left has planned for the US when Hussein's social experiment runs out.

 

[blackhawk]

If there had not been insane out of control spending by this country and other's for more years than any rational person can justify there would be no need for austerity cuts to be made or even considered think about that.

 

[OriginalShroom]

Even Stephen Colbert is piling on Reinhart-Rogoff


Reinhart and Rogoff have also been shown to have used bad numbers for their claims on austerity

And people claim that they don't Colbert and the other so-called comics as their source for what they believe.

 

[OriginalShroom]

If you think austerity causes unemployment you are a hopeless neo-socialist. Government jobs do not grow the economy. They only transfer wealth from one segment of society to another. Sooner or later the taxpayer bubble runs out.

Wow! Aren't you a little embarrassed to put that in writing? Apparently you're not an FDR fan.

Here ya go...

FDR's policies prolonged Depression by 7 years, UCLA economists calculate / UCLA Newsroom

FDR's policies prolonged Depression by 7 years, UCLA economists calculate

Let's hear how UCLA is hot bed of Conservatism.

 

[Soggy in NOLA]

By Alexander Reed Kelly

Austerity threw the 17 countries that use the euro back into recession in the third quarter of 2012. As a result, unemployment is expected to rise 12.2 percent, leaving half of young people in Spain and Greece without jobs, and public debts—the expressed target of the reductions—are growing as well.

Despite “unacceptably high levels of unemployment,” unelected President of the European Commission Jose Manuel Barroso recently said that “reform efforts [i.e., austerity] of member states are starting to bear fruit.” Exactly where that fruit is is not clear, especially to the 26 million Europeans who are out of work.

Paradoxically, a recent paper by economists Luc Eyraud and Anke Weber of the International Monetary Fund demonstrates that austerity and budget cuts intended to reduce debt levels will increase debt-to-GDP ratios in the short term. Another paper by economists Paul De Grauwe and Yuemei Ji finds that countries that embraced austerity most forcefully experienced the greatest declines in their GDP, and that greater austerity led to larger subsequent increases in the debt-to-GDP ratio.

Promoters of austerity have yet to say exactly how populations are supposed to recover when tens of millions of Europeans are unemployed and without the safety nets necessary to remain alive and well, and how national debts are supposed to be paid when those workers cannot contribute tax revenue.

More: The Confirmed Insanity of Austerity - Truthdig

The Insanity of Austerity » Counterpunch: Tells the Facts, Names the Names

The funny part is that Chavez reduced poverty with his "socialism" while Republicans and their cut everything austerity and lower taxes BS have produced nothing.

The only thing that has been cut is the level of increase in spending. Spending is still up bub.

 

[Lakhota]

Most people without any economics background don't understand how it all really works.

BBC News - Reinhart, Rogoff... and Herndon: The student who caught out the profs

Grad Student Who Shook Global Austerity Movement -- Daily Intelligencer