1. Please take 30 seconds to register your free account to remove most ads, post topics, make friends, earn reward points at our store, and more!  

Are we on the verge of another great depression?

Discussion in 'Off Topic [BG]' started by wilser, Sep 17, 2008.


  1. Without the New Deal, the US wouldn't have been able to kick into hear like it did. The reason they could make so many airplanes? All the hydro-electric dams helping to produce massive amounts of aluminum. Without things like that, the economy wouldn't have rebounded like it did and the US wouldn't have been near as big of a force in the latter part of the war.

    lowsound
     
  2. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    I'll agree with that to an extent. I don't recollect that the New Deal did much to help the economic slump, but it did help and it did pave the way for the technical innovations of WWII.
     
  3. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    Rochelle, Illinois
    In the late 70's, the unemployment rate was twice what it is now and the inflation rate was three times higher and in fact was even bigger than the growth in GDP at the time, which made saving money a futile exercise. By 1980, the Economic Misery Index had reached an all time high of 21.98%. Many people said that it was the start of another great depression but just a few years later the U.S. began an eight year run of economic prosperity that saw huge reductions in poverty and increasing wealth and higher standards of living for people in every income level.
     
  4. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    Rochelle, Illinois


    That is a gross mis-characterization of Keynesian economics.
     
  5. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    Rochelle, Illinois

    When marginal tax rates are too high, the economy is negatively impacted and total tax revenues actually decline. This is basic economics. There is always an optimum tax rate that has minimal impact on the economy while maximizing revenues. The idea that you can simply tax and spend your way out of a slump died a long time ago.

    http://www.house.gov/jec/fiscal/tx-grwth/reagtxct/reagtxct.htm
     
  6. guy n. cognito

    guy n. cognito Secret Agent Member

    Dec 28, 2005
    Nashville, TN
    Following the assumption that income tax dollars are "earmarked" to repay the national debt: How do we repay that debt when we eliminate those taxes?
     
  7. jazzy grille

    jazzy grille - Arrogant Bastard

    Aug 15, 2006
    Sarasota, Florida
    294168009_b25decaddf.
     
  8. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    That's not something I have an answer for. I guess I'd have to ask Andrew Jackson, but he's dead.
     
  9. +1
     
  10. guy n. cognito

    guy n. cognito Secret Agent Member

    Dec 28, 2005
    Nashville, TN
    For some reason, I'm not surprised. ;)
     
  11. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    What, that he's dead?
     
  12. guy n. cognito

    guy n. cognito Secret Agent Member

    Dec 28, 2005
    Nashville, TN
    As dead as that no-tax idea....
     
  13. Philbiker

    Philbiker Pat's the best!

    Dec 28, 2000
    Northern Virginia, USA
    The problem is that since the late 70s the measurements of critical economic data, such as "unemployment rate" and "inflation", have changed so much that comparing the numbers today versus the numbers then is like comparing apples and oranges. Inflation measurement doesn't include gasoline and groceries? What do they think people are spending their money on?
     
  14. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    By the way, I do understand that personal income tax money is not specifically earmarked to pay the interest to the Federal Reserve, but that's the way it comes out anyhow. You don't earmark your working days to pay specific bills, do you? (Monday - Wednesday income pays rent, Thursday utilities, Friday insurance, etc., etc.) No - you just pay your debts out of the money you make, regardless of where it comes from.

    Andrew Jackson successfully fought a central Bank of the United States, which was essentially a Federal Reserve back in it's day. I'm sure we could apply similar tactics against the Fed now, figure a way how to pay the debt, and get out of this mess. (Jackson, in the end, vetoed the Second Bank of the U.S.'s charter and then charged them with undue economic privalegde - something the Federal Reseve enjoys now.) I don't believe that personal income tax would be necessary to do this.
     
  15. Benjamin Strange

    Benjamin Strange Commercial User

    Dec 25, 2002
    New Orleans, LA
    Owner / Tech: Strange Guitarworks
    I'm not saying there shouldn't be tax. I'm saying there doesn't need to be a personal income tax to fund the federal government.
     
  16. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    Rochelle, Illinois


    Economists officially measure inflation both ways - with and without the volatile energy and food numbers and I routinely hear both reported in typical news stories.

    The economy hasn't changed that much since WWII and direct comparisons can very appropriately be made between 1978 and 2008.
     
  17. mikedones

    mikedones

    Sep 14, 2008
    mike dones
    Really now even tho the the great depression happened and we where the same size then.

    Doesn't madder how big we are we are all getting hurt with gas prices and economies is ****.

    All the usa company's are either closing or going to china or somewhere in asia or mexico.


    Just wake up and look around and see we are not to big to fail if we have dumbass people running this place.
     
  18. hbarcat

    hbarcat Supporting Member

    Aug 24, 2006
    Rochelle, Illinois








    I'm pretty sure Ben S. was making a satirical comment. Pretty good one, too. :p
     
  19. Guest043

    Guest043 Guest

    Apr 8, 2008
    it had to get worse before it could get better. i think this is just it getting worse. i look at this as preperation for things to get better...

    on the flip side though, as mentioned earlier, look at whats left of the roman emipre, that once was the center of the world.

    scary. hope for the best.
     
  20. It's all coming down, people. It's just gonna get rockier from here. _Alex Jones
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.