The Achilles' Heel Of The U.S. Economy [View article]
"Without significant reform, U.S. entitlement programs are likely to pose a growing economic strain on the economy. For example, without a change to current laws, federal spending on Medicare and Medicaid combined will grow to almost 10% of gross domestic product by 2035, up from roughly 5% today. If left unchecked, Social Security and Medicare will eventually help crowd out all other government spending."
This unsubstantiated hypothesis fails to with stand the do the math test when subjected to one on the fundamental laws of economic, that of Economy of Scale.
Economics is more than money, its resources, manpower, materials and more.
A pure cash flow analysis fails to provide any realistic insight into the realities of demand driven distribution of goods.
If as the author and others propose, budgets are cut to mitigate the "cost" of supporting all the old people, the result will be reduced demand for the basics such as food, for which the American economic engine has managed to fine tune to the point that the marginal costs are exceedingly low, so low in fact that many traditional food resources such as corn are converted to ethanol.
This proposed reduction of "expenditures" would reduce demand, increase the marginal cost of production, and result in less employment and more pressure on prices as the cost structure has been disturbed in a way that reduces consumption and increased prices at the same time.
Keeping promises made to retirees will keep production up, marginal costs down, and reduce pressure to reduce the number of people forced to leave productive roles in what is a very effective if not purely efficient system.
The Soft Bigotry Of Low Expectations [View article]
"In any case, how can the Fed go beyond zero % rates?"
It's called Stamp Tax. Don't assume rates can't go below zero just because they haven't yet. It's been in their toolbox talked about by the Fed for years, they just haven't decided to do it yet. Just wait until pushing on the string waiting for Fiscal response fails.
Wall Street Breakfast: Must-Know News [View article]
We used to store it underground in where it is cool in case of emergency and distribute the surplus via commodities program to ensure a stable supply chain.
Now we have folks that are upset because folks just aren't hungry enough.
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
"With a monopolized money medium, deficits don't really matter. What matters is what the deficit is being created for."
Well said, Hooper.
As long as the money is well spent and the resources are allocated to useful purpose, we will all thrive and prosper.
A spirited debate that is focused on how best to do that is much superior to the "Spoils to the Victor" approach that is proven to be the quickest and surest path to Austerity.
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
"Your hyper-partisan approach is exactly why we have such intractable political problems. The "my way or the highway" approach makes compromise impossible".
Its worse than that.
You can't just agree with the Business Plan, you have to drink the Kool-Aid and join the Pitchfork Parade too.
The Achilles' Heel Of The U.S. Economy [View article]
This unsubstantiated hypothesis fails to with stand the do the math test when subjected to one on the fundamental laws of economic, that of Economy of Scale.
Economics is more than money, its resources, manpower, materials and more.
A pure cash flow analysis fails to provide any realistic insight into the realities of demand driven distribution of goods.
If as the author and others propose, budgets are cut to mitigate the "cost" of supporting all the old people, the result will be reduced demand for the basics such as food, for which the American economic engine has managed to fine tune to the point that the marginal costs are exceedingly low, so low in fact that many traditional food resources such as corn are converted to ethanol.
This proposed reduction of "expenditures" would reduce demand, increase the marginal cost of production, and result in less employment and more pressure on prices as the cost structure has been disturbed in a way that reduces consumption and increased prices at the same time.
Keeping promises made to retirees will keep production up, marginal costs down, and reduce pressure to reduce the number of people forced to leave productive roles in what is a very effective if not purely efficient system.
The Soft Bigotry Of Low Expectations [View article]
It's called Stamp Tax. Don't assume rates can't go below zero just because they haven't yet. It's been in their toolbox talked about by the Fed for years, they just haven't decided to do it yet. Just wait until pushing on the string waiting for Fiscal response fails.
Wall Street Breakfast: Must-Know News [View article]
Now we have folks that are upset because folks just aren't hungry enough.
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
http://bit.ly/KJBLfx
Wall Street Breakfast: Must-Know News [View article]
Absent measures to capture it, it simply dissipates into the atmosphere.
Wall Street Breakfast: Must-Know News [View article]
I have no experience with Germany.
Are you familiar with what the US did back in the 1920s?
Wall Street Breakfast: Must-Know News [View article]
Why buy it when you can rent it for cheap? Let them store it for you.
Wall Street Breakfast: Must-Know News [View article]
http://bit.ly/JaC6Hd
Gold: The Fate That Awaits Once Fed Stimulus Ends [View article]
http://wapo.st/KwawWl
Not So Golden Years: How An Aging Society Can Impact The Markets [View article]
http://nyti.ms/Jj6UdB
Wall Street Breakfast: Must-Know News [View article]
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
Well said, Hooper.
As long as the money is well spent and the resources are allocated to useful purpose, we will all thrive and prosper.
A spirited debate that is focused on how best to do that is much superior to the "Spoils to the Victor" approach that is proven to be the quickest and surest path to Austerity.
Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America [View article]
Its worse than that.
You can't just agree with the Business Plan, you have to drink the Kool-Aid and join the Pitchfork Parade too.