State of the Union Address: Favor

[Joe]

Economics is the study of scarce resources versus unlimited wants. Human action is a good way of describing it.

[neoolong]

RedImperator:

Thanks, I was looking for that. You know, being an econ major, I should know that one. Oh well, back to the books I guess.

Actually, there is evidence that supports both sides. That tax cuts spur growth and that they don't.

Remember, the study of economics has nothing to do with reality.

According to my econ prof.

Strange, my econ prof said that econ was study of human behavior. Specifically, self interested human behavior usually.

Yeah, but only self interested human behavior that conforms to the definition of what economics wants it to be.

[Alex Moon]

Ah, supply-side economics, or right-wing Keynsianism. I wish it would just go away like the rest of that crackpot's ideas.

Actually, most economists support Neoclassical economics. This is very different from Keynsian economics.

[RedImperator]

Ah, supply-side economics, or right-wing Keynsianism. I wish it would just go away like the rest of that crackpot's ideas.

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

[Phil Skayhan]

Did anybody actually do me that favor?

Guick count: 58 (+/- 1)

http://www.cnn.com/2003/ALLPOLITICS/01/ ... index.html

[RedImperator]

Yeah, but only self interested human behavior that conforms to the definition of what economics wants it to be.

In other words, just about all meaningful human behavior.

[Joe]

Ah, supply-side economics, or right-wing Keynsianism. I wish it would just go away like the rest of that crackpot's ideas.

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

And therein lies the problem with supply-side economics; the complete lack of interest in actually cutting government expenditures. Just like Keynsianism, in that respect.

[Dalton]

Most boring thread hijack EVER.

[Alex Moon]

Ah, supply-side economics, or right-wing Keynsianism. I wish it would just go away like the rest of that crackpot's ideas.

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

And therein lies the problem with supply-side economics; the complete lack of interest in actually cutting government expenditures. Just like Keynsianism, in that respect.

That had more to do with politics than with economic theory. You had a democratic congress and Republican president, both of whom had to make compromises while still bringing home the bacon to get reelected.

[Alex Moon]

Most boring thread hijack EVER.

Do we get an award?

[The Dark]

Most boring thread hijack EVER.

Hey, some of us actually care about economics (considering that'll be my second major if I ever get around to declaring...)

[Joe]

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

And therein lies the problem with supply-side economics; the complete lack of interest in actually cutting government expenditures. Just like Keynsianism, in that respect.

That had more to do with politics than with economic theory. You had a democratic congress and Republican president, both of whom had to make compromises while still bringing home the bacon to get reelected.

Well, you're partially right; odd how "compromise" always involves the Republicans selling out to the dark side and agreeing to send more money down the proverbial black hole of the federal government, never to return.

[RedImperator]

Ah, supply-side economics, or right-wing Keynsianism. I wish it would just go away like the rest of that crackpot's ideas.

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

And therein lies the problem with supply-side economics; the complete lack of interest in actually cutting government expenditures. Just like Keynsianism, in that respect.

Supply side doesn't actively encourage government spending like Keynes did, though you're right, I'd be happier if they slashed expenditures while they were lowering taxes. Of course, I'm an evil heartless libertarian. Tell me that homeless single mothers are clogging the gutters, I'll pay them and their kids to dig me bigger gutters.

[Joe]

Supply side economics did NOT cause the deficits in the 80s. That mess was started by the simple fact that no matter how optimal your tax rate and no matter how good your economy, the government has a finite amount of money to spend and an infinite desire to spend it. As Bean said, we spent hundreds of billions of dollars on a military buildup during the Reagan administration, and didn't cut other discretionary spending in any meaningful way. We ran up a multitrillion dollar deficit, but we bought our way out of the cold war with it.

And therein lies the problem with supply-side economics; the complete lack of interest in actually cutting government expenditures. Just like Keynsianism, in that respect.

Supply side doesn't actively encourage government spending like Keynes did, though you're right, I'd be happier if they slashed expenditures while they were lowering taxes. Of course, I'm an evil heartless libertarian. Tell me that homeless single mothers are clogging the gutters, I'll pay them and their kids to dig me bigger gutters.

Ah, I'm an evil heartless libertarian too who wants to take food from the mouths of the children or something like that. Anyway, I'm a meanie.

[BrYaN19kc]

Can you imagine all of those women in RED dresses emerging into the lobby at once! OMG - it would be enough to blind a person!

[Durandal]

Apparently, the United States is "God's gift to the world."

I swear, this guy doesn't do anything unless he can piss off the rest of the world while doing it.

[Spanky The Dolphin]

What's the big deal about the number of times he says "America" in the State of the Union Address?

[Dalton]

What's the big deal about the number of times he says "America" in the State of the Union Address?

Don't ask me. My sister wanted to know.

[neoolong]

Yeah, but only self interested human behavior that conforms to the definition of what economics wants it to be.

In other words, just about all meaningful human behavior.

Not if you're trying to come up with some theory in economics that applies to everyone.

[Phil Skayhan]

Apparently, the United States is "God's gift to the world."

I swear, this guy doesn't do anything unless he can piss off the rest of the world while doing it.

?

"The liberty we prize is not America's gift to the world; it is God's gift to humanity." - Bush

[Durandal]

Am I just being naive, or is it silly to pledge gobs of money toward various programs and of course, the war in Iraq while taking in less tax revenue? Isn't there a balance sheet somewhere upon which this doesn't work out?

This has been Bush's problem since he was running for election. First, he couldn't recognize the subtle, albeit significant distinction between a projected surplus and an actual surplus. Thus, he blew all the money we were supposed to have but didn't actually get.

The problem with lowering taxes now is that everyone is going to save their money rather than spend it. That doesn't do shit for the government's revenue intake. When the economy is in better shape, then you can lower taxes, and then people will spend their money.

[Durandal]

Apparently, the United States is "God's gift to the world."

I swear, this guy doesn't do anything unless he can piss off the rest of the world while doing it.

?

"The liberty we prize is not America's gift to the world; it is God's gift to humanity." - Bush

Hm ... well I heard it second-hand. One of my friends said that he said that America was God's gift to the world. Oh well.

[RedImperator]

Yeah, but only self interested human behavior that conforms to the definition of what economics wants it to be.

In other words, just about all meaningful human behavior.

Not if you're trying to come up with some theory in economics that applies to everyone.

Name me a significant population anywhere that does not act in a self-interested manner.

[Baron Mordo]

How many times did he mispronounce "Nuclear"?

[Dalton]

How many times did he mispronounce "Nuclear"?

Nine, by my sister's count.