Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
The one thing I find disappointing is that in all this debate about a balanced budget versus deficits, the alternative of raising taxes as opposed to austerity cuts to fiscal spending to balance the budget rarely comes up. This proves to me the debate is not really a serious economic one, but a purely political one from those who don't want to see their taxes increase no matter what the economic consequences. Having a deficit is the unspoken compromise between the two parties--no tax increase and no budget cuts. Politicians on both sides of the aisle like that compromise secretly as it makes all of their constituents happy--no tax increase for their wealthy donors and no cuts to social programs for their poor and middle class voters. But it is unsustainable over the long-term. Eventually one side will blink.
I agree with the article, and with the comments by Lewis.
My current pet peeve is regarding the lack of movement on needed infrastructure updating. Spending on these clearly needed items would not only remedy the crumbling infrastructure, but would infuse massive stimulus into the middle class via jobs and wages....lifting ALL boats to include the small businesses serving these workers. At the current low cost of borrowing, the time to do this is NOW.
But...this would be a debt item, albeit at historically low rates and the deficit hawks will have none of it.
I agree with the article, and with the comments by Lewis.
My current pet peeve is regarding the lack of movement on needed infrastructure updating. Spending on these clearly needed items would not only remedy the crumbling infrastructure, but would infuse massive stimulus into the middle class via jobs and wages....lifting ALL boats to include the small businesses serving these workers. At the current low cost of borrowing, the time to do this is NOW.
But...this would be a debt item, albeit at historically low rates and the deficit hawks will have none of it.
Spending on infrastructure is not what it used to be. People have this image of road gangs building/repairing infrastructure. And that helping the middle class. That is from the '30s.
Today there are two very major changes - machinery and the global economy. The machinery eliminates many workers.
The global economy means that the machinery comes from China. The steel comes from Korea. The computers come from China. Many of the basic materials come from outside the USA.
Old ideas will not address the new economic reality.
Bridge Comes to San Francisco With a Made-in-China Label
How many crumbling bridges does it take to convert a deficit hawk? It just astounds me that with the US population overwhelmingly in agreement that we need to get moving on infrastructure building and repairs that we can't get congress to find a way to move forward. Maybe it's just time to flush them out.
Bonds aren't debt to him because you have bankruptcy, I suppose. Who's going to reclaim a bridge? At least he didn't say he'd sell the infrastructure to Russia with repairs to be paid for with tolls every 3 miles.
Comments
My current pet peeve is regarding the lack of movement on needed infrastructure updating. Spending on these clearly needed items would not only remedy the crumbling infrastructure, but would infuse massive stimulus into the middle class via jobs and wages....lifting ALL boats to include the small businesses serving these workers. At the current low cost of borrowing, the time to do this is NOW.
But...this would be a debt item, albeit at historically low rates and the deficit hawks will have none of it.
That is from the '30s.
Today there are two very major changes - machinery and the global economy.
The machinery eliminates many workers.
The global economy means that the machinery comes from China.
The steel comes from Korea.
The computers come from China.
Many of the basic materials come from outside the USA.
Old ideas will not address the new economic reality.
Bridge Comes to San Francisco With a Made-in-China Label
http://www.nytimes.com/2011/06/26/business/global/26bridge.html?_r=0
http://nymag.com/daily/intelligencer/2016/08/donald-trump-calls-for-yuuuge-infrastructure-plan.html