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Post by maui1 on Aug 31, 2011 9:17:32 GMT -5
Hidden stimulus package
But there may be a hidden stimulus package here. MarketWatch's Irwin Kellner said Irene might have reduced growth in the gross domestic product by as much as a full percentage point. But the effects of the storm could boost the fourth-quarter GDP by even more.
He's talking about the sudden influx of work for the construction industry. There is much to clean and rebuild -- and a good portion of that will be funded by the federal government.
this type of thinking is the sole reason we are in hauk up to eye balls.......how the fu-- can this be thought of as stimulus to our economy, if the money comes from tax payers?
it seems if we 'wash' our money threw the fed gov't, some how it becomes new money, but this only happens with drug dealers and thieves........but again, maybe they know who our gov't politicians really are, drug dealers and thieves.
most of you know of this keynesian out look as the "broken window stimulus approach".
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Post by inhouston on Sept 2, 2011 8:16:03 GMT -5
A temporary spike in employment due to a natural disaster?
Problem is - you need to keep having natural disasters on a regular basis to have steady meaningful employment.
Problem is - Part 2 - who is going to pay for this disaster repair/reconstruction?
a) Insurance industry - lowers profits & earnings
b) Federal government - already in a debt-crisis mode
c) State governments - 47 of 50 states are already in financial stress - they don't have the money
d) local governments - some are healthy - some are not
In the end - I believe it will be a wash - either way - since those who lost businesses and jobs may equal those coming in SHOVEL READY to replace/repair.
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Post by maui1 on Sept 2, 2011 8:29:02 GMT -5
correct...........there is no way to get 2 dollars out of one dollar........no matter how our gov't wants to spin it, especially if that dollar in question is a borrowed dollar.
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Post by inhouston on Sept 2, 2011 9:08:58 GMT -5
I hate to use the term - "This time it's different"
However - in one aspect it is different this time.
The last time our Government stepped in to "save' the economy and markets during the Great depression -
USA was a Creditor nation
This time -
USA is a Debtor nation
IMHO- So in that sense - this time - actually is different
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Post by maui1 on Sept 2, 2011 10:12:52 GMT -5
The last time our Government stepped in to "save' the economy and markets during the Great depression
the gov't did nothing to "save" the economy back then..........most feel that it interfered with the economy fixing itself, as it is doing now.
i agree that our credit status has changed, but it does nothing to make me believe that the gov't then or now, has the ability to "change" any thing. delay and compound, yes, but not change.
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