Economic Humpty Dumpty

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Bolaji Ojo
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Re: budget
Bolaji Ojo   1/3/2013 6:52:24 PM
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I imagine that when the government starts cutting back spending on healthcare, infrastructure constructions and repairs, disaster support and unemployment benefits because we have too much debts then we would all (economics professor and layfolks like us) realize debts do count.

Ariella
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Re: budget
Ariella   1/3/2013 6:44:46 PM
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@Bolaji Back in my undergraduate days, one of my economics professors insisted that the national debt really has no impact on our lives. Since then, the numbers have risen to such a stratospheric point that people can no longer brush off concerns about the debt. 

Bolaji Ojo
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Re: budget
Bolaji Ojo   1/3/2013 6:21:49 PM
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Ariella, I believe that at one point the party that is now most concerned about high US debt said "Debts don't matter." Now, it does. I remember writing then that simple arithmetrics tell me debts matter but that I guess has to do with households than governments. Now, debts have come into focus and they now matter, according to the same party. We've swung, though, too far in the direction we should have been all along and now we want to kill every government program (except defense) because "debts matter." It's comical!

Bolaji Ojo
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Re: budget
Bolaji Ojo   1/3/2013 6:18:19 PM
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FlyingScot: Budget? That word didn't come up at all during the jostling over the "fiscal cliff." This has nothing directly to do with a future budget although it was part of a previous budget negotiation. I believe it's main significance is in determining how much tax different income levels get to pay. That's a simple way to look at it.

Barbara Jorgensen
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Re: budget
Barbara Jorgensen   1/3/2013 4:49:03 PM
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FScot: It's great to hear from an outside the US source that sees things clearly. The budget is almost an afterthought in all of this: there is no balanced budget promise attached to the activity. It's all about paying for the status quo without killing the taxpayer and making dastic cuts. It would actually be funny if it wasn't so critical to the econoy.

Ariella
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Re: budget
Ariella   1/3/2013 8:54:54 AM
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@flyingscot we are, indeed, in a mess. What the government is doing is like constantly renewing a loan in bigger amounts every time. Each renewal defers a disaster, but at some point, it will catch up with us all.

FLYINGSCOT
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budget
FLYINGSCOT   1/3/2013 5:12:32 AM
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Is this fiscall cliff negotiation even related to a proper budget?  From an "outside of the USA" perspective it looks like the politicians have a series of unconnected fiscal discussions that are not tied directly into a well thought out budget.  If that is the case it is little surprise we are in this mess.

Bolaji Ojo
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Re: Confidence?
Bolaji Ojo   1/2/2013 8:28:38 PM
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Right. But they are also both losing with voters and the general public. At this point, I know I like democracy but I hate the way it is being practiced by Congress.

Barbara Jorgensen
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Confidence?
Barbara Jorgensen   1/2/2013 2:13:34 PM
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Yesterday's measure is merely a band-aid for a very big wound. It buys Congress some time, but I think the partisan bickering will continue. I'm not convinced that the various factions have the country's economic interests at heart. It's all about who wins more points: Republicans or Democrats.



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