The General Economics Thread:
- The merits of competing theories.
- The role of the government in managing the economy.
- The causes of and solutions to our current economic woes.
- Comparisons between the economic systems of different countries.
- Theoretical and existing alternatives to our current market system.
edited 17th Dec '12 10:58:52 AM by Topazan
edited 17th Dec '12 2:00:43 PM by Ultrayellow
edited 17th Dec '12 2:51:16 PM by Topazan
edited 17th Dec '12 2:59:39 PM by Ekuran
edited 17th Dec '12 3:21:55 PM by Topazan
edited 17th Dec '12 3:50:47 PM by RTaco
edited 17th Dec '12 4:03:13 PM by Ekuran
edited 17th Dec '12 4:15:59 PM by Topazan
- Economic growth in the U.S. has consistently been highest when taxes were highest:
- http://www.slate.com/blogs/spitzer/2012/08/08/romney_economic_agenda_low_marginal_tax_rates_don- _t_lead_to_growth.html
- Iceland suffered a horrible banking crisis under conservative economic policy, but quickly recovered once they adapted Keynesian policies.
- Ireland's policies include every measure that conservatives are calling for, and it's suffering from extreme unemployment and a major depression. Spain has also adopted considerably more austere policies than most of Europe, and yet it is also doing among the worst.
- Sweden has some of the highest income tax rates in the world, and has been among the least affected by the recent global recession. Their unemployment is half the United States', their GDP per capita is higher, and they've been rated the 2nd most competitive nation on Earth by the Global Competetiveness Forum.
- Germany's economy is also heavily regulated and pro-union, and they're doing better than all of Europe. They also have one of the lowest unemployment rates in the world right now (5.4%) and have benefited greatly from investing more into solar and wind power than almost any other nation.
- Australia has an extremely progressive income tax, with a rate of 0% for the lowest bracket and 45% for the highest. They have been affected by the recession less than any other nation and have an unemployment rate of just over 5%.
- Japan has an enormous deficit at the moment, and yet it's unemployment rates and average income are better than those of most nations at present. Unless Japan collapses very, very, soon, national debt is unlikely to be the problem conservatives make it out to be. In an inversion, Italy has one of Europe's lowest debts but is still suffering horribly.
- Canada, which is considerably more socialist than the US, has an unemployment rate half the size of ours and an average income (after taxes) that's nearly 50% greater.
- The U.S. has been in austerity for years thanks to the loss of public sector jobs (teachers, police, etc.). According to the Chicago school, this reduction in spending (combined with the Bush tax cuts) should be putting us in a boom, but instead we're in a major slump.
- Prior to the '80s, our rapid growth was most prevalent in the middle & lower classes. As other nations began to recover from WWII and catch up, they got more competetive, and our growth shrunk. We ran into inflation problems and high gas prices, and so we implemented Reaganomics. When things got going again, growth favored the top earners instead. So at a broad glance the recovery was more rapid, but in reality it was only rapid for the tiny portion of the population that held almost all of the money. Our present income inequality is a direct result of his economic policy.
- Further, the national debt started rising at $237 billion dollars a year under Reagan, compared to the previous rate of $57 billion a year under Carter. The public debt also went from taking up 26.1% of our GDP to 41%, and rose from $712 billion to $2,052 billion.
- After Obama's first fiscal year started, the rate of debt growth almost immediately dropped to '90s levels, and his most recent budget has no deficit at all, but a surplus.
- The stimulus did save jobs; it was too small to fix everything, but overall we're better off than if it hadn't been done.
- The Affordable Care Act (Obamacare) will save the federal government at least $50 billion over the next ten years in comparison to our previous healthcare system.
- Another study shows that public healthcare beats the costs (both to individuals and the government) of private healthcare in all cases.
edited 17th Dec '12 4:41:54 PM by RTaco
edited 17th Dec '12 4:40:20 PM by RTaco
edited 17th Dec '12 4:48:36 PM by RTaco
edited 17th Dec '12 4:57:36 PM by Trivialis
edited 17th Dec '12 5:05:10 PM by Wicked223
- Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy.
- In economics and political science, the use of government expenditure and revenue collection (taxation) to influence the economy.
- Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
- Effect of changes in government spending on national economy.
- My definition: The government changes taxes to influence the economy. *
- In Late February, President presents budget plan to Congress. Not finished until September.
edited 17th Dec '12 5:24:12 PM by chihuahua0
- Real Business Cycle Theory: Business cycles are caused by "technological shocks" that interfere with production in a tangible way. "Examples of such shocks include innovations, bad weather, imported oil price increase, stricter environmental and safety regulations, etc."
- Austrian Theory: Interest rates made artificially low by policy creates the illusion of prosperity which deceives people into making unsustainable "malinvestments". Basically, speculative bubbles.
- Georgism: Henry George believed that business cycles were caused by rising land values. During good times, speculation pushes land prices past the point at which labor and capital can afford to access it, and production breaks down.
edited 17th Dec '12 5:52:37 PM by Topazan