maninahat said:
spartan231490 said:
Mid-Boss said:
spartan231490 said:
Mid-Boss said:
I actually have to point out that that isn't how inflation works. Inflation currently is based on the interest rates set and on international trade. Current inflation is not based on the amount of currency in circulation. Also, if Inflation were based on currency in circulation, the inflation amount would have been the same regardless of whether the bailout money went to the people or to the banks like it did. In fact, because of the way lending and banks work, it probably would have caused less inflation had it been payed to the people. Prices would increase, but only because people would be more willing to pay higher prices, the demand curve would shift, it has nothing to do with inflation.
Sorry about that, but misunderstanding inflation really bugs me, it's a peeve. Other than that, i agree with your post. Being a soldier doesn't make you any more right than anyone else.
Does that mean.... I could be a millionaire right now...? But instead we threw a fortune at the people who created the problem in the first place?
More or less. Yeah, life's a *****. Welcome to government for big business.
I don't think that is entirely fair to blame big business for everything. Recessions are largely about consumer confidence, so whilst foolish, selfish bankers might have started the crisis, it was us members of the public who perpetuated it by stuffing the matresses, spending less, and ensuring more businesses would run out of cash. Giving money to businesses and banks and restoring confidence is (unfortunately) the only way to get things moving again.
I didn't blame big business, I blamed the government for putting big business ahead of everything else leading to 40 years of bad economic policies that had absolutely no other logical endpoint than a horrible recession like the one we've been facing for 10 years.
No, that is keynesian economics which is highly suspect and debated. Largely in part because if it worked than we wouldn't be in an recession any more.
Small recessions can be caused by consumer confidence, this one has nothing to do with consumer confidence. It is a result of much deeper problems like low manufacturing, low taxes on the highest tax brackets, too many tax loopholes, and Keynesian economics justified overspending on a completely unsustainable level for a completely unsustainable amount of time, and lastly the controlled inflation that has been perpetrated for the last few decades in order to prevent us from being crushed under that debt at the cost of destroying american savings and devaluing the dollar.
Also, to address something you said specifically, this has nothing to do with stuffing the mattress. The vast vast majority of Americans are living paycheck to paycheck because they can't afford to save money. Prices are rising, wages aren't, and unemployment is skyrocketing. If you include discouraged workers(which you should but the government doesn't in order to look good), then it's absolutely staggering. If you use the method that the government stopped using around 1980, then in June of this year the unemployment rate in the US was over 25%