@beardmusic saidI’d written above, our strong economy goes a long way in keep in the debt in line, but yes, there are limits
@AverageJoe1
It is the National Debt that will be the insurmountable problem as we move forward.
The first trillion dollars of US debt took over 200 years to generate (this included WWI, WWII and the New Deal etc.) Reagan the 'fiscal hawk' trebled the debt to almost 3 trillion in only 8 years! Now a trillion is added every couple of months. We're trapped in an inflatio ...[text shortened]... terest rates at 0% for over a decade. This is economic suicide, as we will find out in due course...
If GDP is growing rapidly, tax revenues generally grow WITHOUT raising tax rates, making existing debt easier to service. The real concern isn’t simply the dollar amount of the debt…it’s whether debt is growing faster than the economy over the long run. Common sense.
So, , If the economy grows faster than the debt over time, the debt burden (often measured as debt-to-GDP) can stabilize or even decline.
Strong economic growth increases business profits, wages, etc and tax revenues, which can reduce deficits IF spending is restrained.
Inflation also reduces the real value of existing fixed-rate
We need investment and productivity. BTW, that is what your hated billionaires do. Next, Restrain spending (supporting 20M illegals who are ruining everything, we even give them housing vouchers, which forces our citizens out of housing market).
Finally, avoid unnecessary tax increases that slow growth. You can FORGET that one if you people take over.
We want the economy to grow faster than debt,
Beard music? All of this takes restraint. Which party exercises more restraint?
Please run this by Wildgrass, he is a brick wall.
@AverageJoe1 saidSo you figure the GDP goes up 10% but the national debt goes up 20%, would that be acceptable?
I’d written above, our strong economy goes a long way in keep in the debt in line, but yes, there are limits
If GDP is growing rapidly, tax revenues generally grow WITHOUT raising tax rates, making existing debt easier to service. The real concern isn’t simply the dollar amount of the debt…it’s whether debt is growing faster than the economy over the long run. Common ...[text shortened]... straint. Which party exercises more restraint?
Please run this by Wildgrass, he is a brick wall.
@sonhouse saidIt's a start. Also,, we could keep illegals the hell out of here!!!!!!! They are expensive. Next people like you will want us to med them!!! Oh, wait , you already do that.
So you figure the GDP goes up 10% but the national debt goes up 20%, would that be acceptable?
If we stop the several hundred million that we spend on them, and stop giving money to other countries, like USAID, we may be able to turn the corner!!!!! By God!!! We got a plan little feller!!!!!
@AverageJoe1 saidThat is really funny, YOU thinking there is a WE when it comes to Trump, literally the most corrupt POTUS BY FAR in US history.
It's a start. Also,, we could keep illegals the hell out of here!!!!!!! They are expensive. Next people like you will want us to med them!!! Oh, wait , you already do that.
If we stop the several hundred million that we spend on them, and stop giving money to other countries, like USAID, we may be able to turn the corner!!!!! By God!!! We got a plan little feller!!!!!
His own financial statement, like Obama, his statement was 9 pages long. Trump's statement, 9 HUNDRED pages and he admits to 2 billion made just last year. No impropriety of course, YOU would think.
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@AverageJoe1
Fair enough, the problem is that much of the 'growth' we have witnessed since 2008 has largely been a speculative bubble that hasn't filtered down into the 'real' economy, i.e. everyday people's lives. This is the root of the appeal of both MAGA and Mamdami etc.
Sure, if you have stocks or own a house their value has increased: but that's part of the problem this is a bubble.
Basically, if you bought a house (as I did) over ten tears ago and it doubles/ triples in value it isn't because I'm 'smart' or the economy is 'booming' but because of INFLATION. There is little real economic activity to back up most of the valuations on the stock market and this will be a huge problem moving forward... As for the debt as I said this is impossible to pay off, the only option is to debase the currency - via inflation - which is precisely what is happening. When Nixon went off gold in 1971 gold was $35/ an ounce now it is over $4000, here is inflation writ large.
The bottom line of all this will be - you don't get rich by printing money: The lesson of our era...
@beardmusic said… or by debasing it.
@AverageJoe1
Fair enough, the problem is that much of the 'growth' we have witnessed since 2008 has largely been a speculative bubble that hasn't filtered down into the 'real' economy, i.e. everyday people's lives. This is the root of the appeal of both MAGA and Mamdami etc.
Sure, if you have stocks or own a house their value has increased: but that's part of the proble ...[text shortened]... The bottom line of all this will be - you don't get rich by printing money: The lesson of our era...
@beardmusic saidNot so fast, it depends on your point of view. One fact that is not controversial is that the purchasing power of the U.S. dollar has declined substantially over the past century. Whether that should be described as “debasement” or simply “inflation” depends on one’s economic perspective.
It has certainly been debased for decades...
It could be(in early 1900s)) reducing precious metal content in the coins. Later, it could’ve been about the dollar losing purchasing power. There are different definitions of debasing.
One fact that is not controversial is that the purchasing power of the U.S. dollar has declined substantially over the past century. Whether that should be described as “debasement” or simply “inflation” depends on one’s economic perspective. In my opinion, discussions about purchasing power probably should not use the word debase. It’d be more specific to learn about the modern ways that banks are using inflation…..to encourage investment, reduce the risk of deflation and try to build a healthy economy.
@beardmusic saidA great post, well said.
@AverageJoe1
Fair enough, the problem is that much of the 'growth' we have witnessed since 2008 has largely been a speculative bubble that hasn't filtered down into the 'real' economy, i.e. everyday people's lives. This is the root of the appeal of both MAGA and Mamdami etc.
Sure, if you have stocks or own a house their value has increased: but that's part of the proble ...[text shortened]... The bottom line of all this will be - you don't get rich by printing money: The lesson of our era...
Growth in the economy is positively felt by a smaller and smaller fraction of our society every year. The rest of us just have to pay 3X property taxes because our home values went up while take home pay stayed the same.
@AverageJoe1 said
Not so fast, it depends on your point of view. One fact that is not controversial is that the purchasing power of the U.S. dollar has declined substantially over the past century. Whether that should be described as “debasement” or simply “inflation” depends on one’s economic perspective.
It could be(in early 1900s)) reducing precious metal content in the coins. Later ...[text shortened]... nflation…..to encourage investment, reduce the risk of deflation and try to build a healthy economy.
One fact that is not controversial is that the purchasing power of the U.S. dollar has declined substantially over the past century. Whether that should be described as “debasement” or simply “inflation” depends on one’s economic perspective.
This is happening because of government borrowing more and more. If government spending required raising tax revenue to pay for it, inflation would be A LOT less.
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@AverageJoe1
To a point I agree, however, in the context of our discussion debasement/ inflation can be used interchangeably without too many qualms. Debasement implies a conscious effort to deliberately lower purchasing power whereas inflation has a more 'autonomous' character. That said, irrespective of what we call it 'inflation' is rampant and the banking/ credit system is firmly to blame in this regard. The banks should have collapsed in 2007 (if we had a free-market) and those guilty of malpractice (such as AIG who were 'insuring' reckless lending) charged. As it is they were bailed out (by practically doubling the money supply) and helped further by interest rates being kept at 0% for a decade (lots of 'free money' there-arguably the largest act of SOCIALISM in history!). As we will (are) finding out this is economic suicide as anyone before 2008 would have told you - imagine what Volker would have said.
@wildgrass saidCorrect. Consider there are a lot of factions, pulling against each other. People like you are trying to pay the bills of other people, like those illegals living in apartments. People like me are trying to not spend money like that, so we are two factions , just you and me.One fact that is not controversial is that the purchasing power of the U.S. dollar has declined substantially over the past century. Whether that should be described as “debasement” or simply “inflation” depends on one’s economic perspective.
This is happening because of government borrowing more and more. If government spending required raising tax revenue to pay for it, inflation would be A LOT less.
I hope you appreciate the way that I whittle things down to common sense and simplicity. If we live together in an apartment, you would want to throw Money out the window, I would want to put it in the freezer. You would say what in the hell why are you doing that??!?!?!
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@AverageJoe1
I'm still waiting to hear why giving 'free-money' to banks is a good idea and why you don't lament this as what is is - socialism...
@beardmusic saidShow us where the governmetn gives free money, to banks, with no strings attached. Remember this last part when you send us something. Cant be strings if it is free. Sorry I took so long, been enlightening Maruaduer all day.
@AverageJoe1
I'm still waiting to hear why giving 'free-money' to banks is a good idea and why you don't lament this as what is is - socialism...