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Originally Posted by pan6467
Amazing, the Right who claim the government taxes too much and supposedly worries how government spends money comes up with excuses to say that the borrowing of the 1.05 TRILLION and the deficit spending of 300 Billion for the next 10 years and the constant raising of the debt limit is "ok".
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I never said it was OK. I said that it doesn't matter if we raise taxes now or later, the expected value of those tax payments remains the same. Obviously it is best to only spend what you have, but if you do spend more the sky will not fall.
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Originally Posted by pan6467
Which I have serious problems with borrowing any money from foreign countries, yet Bush and his followers believe there is nothing wrong at all.
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If another country wants to buy US treasuries and invest in this country that is good for us. That means their $$ are helping you and me obtain a higher standard of living. They could invest in any country, but they chose the US. wonder why.
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Originally Posted by pan6467
The bonds still have to be paid and T-Bills come due and people whoi buy them expect the money to be there and that it is worth something more than what they paid. The borrowing of the money from the banks and the foreign governments will come due, and they will expect payment of more than what they gave.
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Thats the whole point of investing.
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Originally Posted by pan6467
So basically, the argument from the right so far is, don';t worry about the debt because it will never come due.
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not really. Treasuries come due everyday.
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Originally Posted by pan6467
This expectation of tax revenue to be the same is very optimistic considering downsizing, layoffs, huge companies filing bankruptcy and maybe gone, shipping jobs overseas and less pay. So with those coming and here, how is this tax base growing?
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You watch too much lou dobbs. I have a secret for you...lou dobbs is full of shit. One thing that you can use to look at the state of the economy and how much value people place on businesses is the stock market. When the stock market goes up, people see value and strong companies and choose to invest in those companies. The stock market is generally a good indicator of how companies are doing. With the picture you paint, the stock market should be swirreling around in a toilet about to go under.
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Originally Posted by pan6467
Ah, but the Bushy's still clasp to the "it's getting better", unemployment claims are down, the DJI are going up.
Yeah, you ever watch the market, the stocks go up when unemployment goes up not down.
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You can't be serious? Where did you study economics? Since this isn't the best forum to do regression analysis, and I don't really have the time right now to run one to prove it to you I'll just post a few graphs for you to look at, then tell me there is a positive relationship between the stock market and unemployment. note that the unemployment rate graph starts in 90, while the sp500 graph starts in 96. If anything there is an NEGATIVE relationship between the stock market and unemployment.
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Originally Posted by pan6467
As for the unemployment rates, they base those on new filings and after you have expended your allotment employed or not you are no longer in that count.
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So are you telling me that the unemployment rate is a bogus indicator and should not be used for anything? I know how they calculate unemployment, and its a relatively accurate measure. Do you have a better one? Data is collected on new filings, and that is what they report every month. They also calculate the unemployment rate based on the percentage of unemployed in the work force, and yes, you have to be actively seeking a job to be counted as unemployed. If you have given up and thrown in the towel, you aren't counted, but that doesn't make the unemployment rate a bogus number.
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Originally Posted by pan6467
Plus, if you get a job with lower pay, you are no longer listed, however that tax base you were supposed to be paying into is now lower and that means lower income for the government and you.
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Take a look at per capita income. Contrary to your belief it is growing and has continued to grow through out 2005. IF I had more time I would find the latest release from BEA, but I've spent too much here already today. I'm sure if you want you could look it up.
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Originally Posted by pan6467
BTW, what happens when these countries and banks do not like what our country is doing and decide to collect their debts?????????
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They try to sell their treasuries to another party. But they can't sell them back to the US treasury until they come due or until the US treasury calls them in.
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Originally Posted by pan6467
I know according to Bushy's we just print up all the money we need. Thereby inflating the whole damned economy to the point of destroying it.
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Thats exactly what the "bushys" are saying.
I don't think I've heard that from anyone.
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There is mixed data, sometimes employment growth is not as good as expected, other times it is better. Inflation appears to be moderatly on the rise due to higher fuel costs. But, honestly, the sky is not falling.