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the stimulus they claim is not wanton spending by the Federal government but transfer payments. Those include extensions of unemployment, food stamps, and other
by Shivetya 9y ago
the stimulus they claim is not wanton spending by the Federal government but transfer payments. Those include extensions of unemployment, food stamps, and other assistance programs. It also includes, contrary to how we think but government thinks, tax rate cuts and tax holidays.
the real threat isn't the US still, it is that Europe still is more likely to tip and negative interest rates over there are a serious drag. Just ask Japan how long the malaise was because of bad fiscal policy and attempts to prop up on government money was
- apexalpha 9y agoJust a few countries in Europe are in bad weather though, the Germanic core of the European economy is in good shape and Eastern Europe is rapidly catching up. Maybe it's misplaced, but I am pretty optimistic.
- digi_owl 9y agoI would not be. The reason Greece got such harsh treatment was because their government took over much of the private debt at the outset of the crisis to avoid mass bankruptcies. Thing is that much of that debt was issued by German banks. Thus if Greece defaults, German banking is in for a rough time. Never mind that the German economy hinges on maintaining massive exports, while domestic wages have been deliberately held back.
- alphaalpha101 9y agoYour entire comment rests on the assumption that it's a bad thing to deficit spend. But it isn't. It's how literally all economies function.