Gov't math

[JasonInAugusta]

Bank bailout: $800 billion
Auto bailout: $100 billion
Stimulus: $787 billion
$410 billion for "government operations"
$634 billion for "health care reform"

That's over $2.7 trillion

[TattooKenny]

I'll settle for 1/1000 of that Then I will call me and the Govt. square

[Highmark]

GDP = C+I+G+(x-m)

Ever hear of it? Or why it's important?

[MOVIN-SLOOOOOOW]

Could have paid of most people houses...but the only ones too get rich will be the banks and ceos...it's a joke

[JasonInAugusta]

Originally Posted by Highmark

GDP = C+I+G+(x-m)

Ever hear of it? Or why it's important?

Yeah, I learned that in High School. It's the formula for calculating Gross Domestic Product.

You guys going over that in college right now?

[Highmark]

Originally Posted by JasonInAugusta

Yeah, I learned that in High School. It's the formula for calculating Gross Domestic Product.

You guys going over that in college right now?

Nagh, that was introduction to macroeconomics, not my cup of tea.

The point was this, how do you get the Gross Domestic Product to go up? With the only thing that you as a government have direct and swift control over, that's why they're spending all this money (G = Government Spending). Government spending usually makes up something like 40% of the GDP anyway, they're just throwing a few extra bills at it.

That's one of two ways of looking at the problem, the flip side would be how a classical economist would do it, kill taxes, and interest rates in hopes of increasing consumption over the long term. Problem being we have a long term problem in need of a short term solution.

That's just my 2 cents on it, but I'm no Economist

[MOVIN-SLOOOOOOW]

When all else fails..print money

[JasonInAugusta]

Highmark, I always thought gov't spending was ~18% of a country's GDP.

Your 40% seemed awfully high so I hit Google.

Check this out.

http://www.hoover.org/research/facts...s/4931661.html

–Investment: 17 percent
–Government spending: 19 percent
–Net exports: –6 percent (more imports than exports here)

Personal consumption accounts for 70 percent of gross domestic product.

[Highmark]

Ehhh I think that may be a little off Jason, but its a little old (Nov. 06)


Battle of the sources:
http://www.usgovernmentspending.com/...ury_chart.html

They're guessing 36.54% along with a few other sources I checked including Colander who is generally considered to be a pretty reputable source.

Anyway, point being I'm just suggesting that this is the tactic that is behind all the spending.

[JasonInAugusta]

Thing is...this IS NOT something that can be considered Gov't spending.

Otherwise we'd have a freakin' ridiculous GDP for '09.


The gov't has "given money" to various parts of business (banking industry, big three, housing industry and soon to be healthcare industry) and will use the fact that "we gave you money" to force its hand "for the good of the country"

It's a power play and my kids, thier kids, and their kids will be footing the bill.

Want stimulus? Want to actually create jobs?

Tax the fawk out of companies that outsource...to the point that it's no longer profitable to have shit done overseas.

Then...offer tax incentives to companies that produce items in the USA.

Here's a CRAZY idea.

STOP FORCING BANKS TO GIVE LOANS TO THOSE WHO CAN'T AFFORD IT! (Mortgage crisis, anyone?)

Check this out

[BUBBA069]

I know from personal experience you can not and mean CAN NOT pay debt by borrowing more money. Every time its a little more then the last time and the hole gets deeper.

You can not fix a problem with the same thinking that caused it.

[cars69]

Originally Posted by JasonInAugusta

Thing is...this IS NOT something that can be considered Gov't spending.

Otherwise we'd have a freakin' ridiculous GDP for '09.


The gov't has "given money" to various parts of business (banking industry, big three, housing industry and soon to be healthcare industry) and will use the fact that "we gave you money" to force its hand "for the good of the country"

Jason you said big three. Ford did not take the money.

[dirk379]

Fawkers........

[chrisjlittle]

Originally Posted by BUBBA069

I know from personal experience you can not and mean CAN NOT pay debt by borrowing more money. Every time its a little more then the last time and the hole gets deeper.

You can not fix a problem with the same thinking that caused it.

Thank you! I thought I was the only one who was seeing a problem with that. It just seems so ridiculous to throw borrowed money at a problem that started because of too much borrowing.

Personally I think the painful fact of the matter is that the economy was artificially inflated to an unhealthy point, and the only way for the average joe to have a shot is for prices to come down. I lived in LA from 2005-early 2007 and I looked around to maybe buy a house, and the cheapest homes I could find were tiny dingy condos in the hood for 300k+! How the hell is a 700 square foot condo with drive-by bullet holes in the side worth 300k?
As much as it sucks for people who loose out on their investments, loose their jobs etc... this needs to happen. We should have just kept the banks afloat and then let shit play out IMO.

[chrisjlittle]

I just saw this and thought it was pretty accurate