Tag Archives: economics

Duh Economics

If I hear one more person ask how spending billions of dollars is supposed to stimulate the economy, I think I’ll scream at the top of my lungs while pulling every hair out of my head. After that, I will buy a wig, glue it to my head and continue with the hair-pulling.

I’m going to be as restrained as I possibly can here, but this is getting ridiculous. At the risk of sounding like a condescending jerk, when someone asks how spending money stimulates the economy, they show a complete ignorance of even high school-level economics. The question is as jaw-dropping to me as asking how billions of people having sex is supposed to stimulate population growth.

So then you get the argument, ‘well, this is not a stimulus bill, this is a spending bill.’ What do you think a stimulus is? That’s the whole point! — President Obama

Exactly! I’ve been saying this, almost verbatim, for a couple of weeks now. Thank you, Mr. President!

But now we’ve got people saying, “So, he finally admits that the stimulus bill is about spending.”

Excuse me while I have a facepalm moment.

President Obama no more “admitted” that the stimulus bill is about spending than a person could “admit” that air traffic is about planes flying around in the sky, or that ice is about frozen water.

But let me tell you where I think President Obama went wrong in all this: He gave too many people more credit than they deserved in assuming that they understood what the damn word means.

He didn’t “admit” to anything, as that would imply that he had previously denied or attempted to cover it up. I think he just finally realized that he was going to have to dumb it down for people who clearly weren’t grasping all the words or understanding the very basics of Duh Economics.

This is not simply a matter of perspective. This is not some sinister, liberal conspiracy to steal people’s money. The United States is in economic crisis. Police are being called to control the crowds at job fairs! This is the harsh reality of the situation.

Republicans may not like it but the way to create jobs fast is through spending. It matters when you’re wrong. A whopping proportion of the Republican rhetoric about stimulus is wrong – total economic bull puckey. It’s time to take the radical step of privileging correct information over incorrect information.

Rachel.msnbc.com

For a crash course in what economists from both sides of the aisle are saying, please watch at least the first four minutes of this, though I do recommend the entire eight minute course.

Posted by Lottie — Copyright © 2009 Rambling On


Pondering The Auto Bailout

A CNN research poll showed that 61% of Americans oppose a government bailout for the U.S. auto industry:

NEW YORK (CNNMoney.com) — A majority of Americans oppose a bailout of the troubled U.S. auto industry, according to a poll released Wednesday.

The CNN/Opinion Research Corp. poll, conducted by telephone on Dec. 1-2 with nearly 1,100 people, showed that 61% of those surveyed oppose government assistance for the major U.S. automakers.

[…]

A full 70% of respondents indicated that a bailout is unfair to taxpayers.

In addition to being unfair, the poll showed that a majority of those surveyed think a bailout would not help the economy.

CNNMoney.com

Before I say another word, I want to make clear that I am not claiming any kind of expertise in the area of economics. I wonder, though, if a simple, common-sense approach to this might be in order.

Let’s begin with the the concern that a government bailout of the auto industry would be unfair to taxpayers. I wonder if the people who oppose the bailout on these grounds have considered the 3,000,000 (three million) people who make up the auto industry. That’s 3,000,000 more people out of work!

Will those who are claiming that a bailout would be unfair to taxpayers be OK with those 3,000,000 people putting their children on Medicaid, receiving food stamps and government funded housing assistance, and a variety of other forms of government aid — all of which is funded by taxpayers?

For those who are concerned about the fairness to taxpayers, doesn’t it make more sense to support a one-time bailout which will keep 3,000,000 people working, out of the unemployment and “welfare” lines so that they have more to put back into the economy?

Yes, the economy. That’s the other concern. In addition to a bailout being unfair to taxpayers, those opposing it also think that it would not help the economy.

And putting 3,000,000 people out of work will?

Like I’ve already said, I’m certainly no expert on the subject. But I don’t think it takes an economic genius to figure out that putting 3,000,000 people out of work can’t be “fair” to taxpayers or good for the economy.

Am I missing something, or have these people not thought this through very well? Sure, there need to be restrictions and conditions on any sort of bailout. But, in the bigger picture, doesn’t it make more sense and benefit all sides to keep the auto industry moving and 3,000,000 people working?

As always, I welcome any and all feedback.

Posted by Lottie — Copyright © 2008 Rambling On