Concerns about the $1.9T stimulus package

[ttwtt78640]

So?

The only thing that matters is if economic growth exceeds deficit growth over a longer term trajectory.

That the government borrows and spends more money is irrelevant.

OK, but is the national debt to GDP percentage (ratio?) rising or falling?

 

[Kushinator]

OK, but is the national debt to GDP percentage (ratio?) rising or falling?

Of course it's rising. I was careful to emphasize longer term trajectory, and that point should almost be intuitive. Even if we ran a balanced budget, debt to GDP would have risen because GDP (denominator) had fallen by 3%.

 

[ttwtt78640]

Of course it's rising. I was careful to emphasize longer term trajectory, and that point should almost be intuitive. Even if we ran a balanced budget, debt to GDP would have risen because GDP (denominator) had fallen by 3%.

That’s pure BS, since the debt to GDP ratio was rising prior to the last recession (COVID slump).

 

[Kushinator]

That’s pure BS, since the debt to GDP ratio was rising prior to the last recession (COVID slump).

What is pure BS? The fact that GDP fell by 3%?

FWIW

 

[ttwtt78640]

What is pure BS? The fact that GDP fell by 3%?

FWIW

Nope, what is BS is that the debt to GDP ratio was not rising before that recent GDP dip.

 

[Kushinator]

Nope, what is BS is that the debt to GDP ratio was not rising before that recent GDP dip.

When did I claim debt:gdp was not rising?

 

[ttwtt78640]

When did I claim debt:gdp was not rising?

You came back with some lame diversion about GDP having dropped 3%. So do we agree that “over the long haul” the national debt keeps rising relative to annual GDP and has now exceeded it?

 

[Kushinator]

You came back with some lame diversion about GDP having dropped 3%.

How was that a diversion? It's a fact... The ratio had been relatively flat after the financial crisis and the time to reduce deficits was during the recovery!!! Instead, the tone was squandered to give tax cuts and grow expenditures.

Why? Because we didn't see the miracle of economic growth following the tax cuts. Remember 3%, 4%, and even 6% rGDP growth projections?

So do we agree that “over the long haul” the national debt keeps rising relative to annual GDP and has now exceeded it?

It's a short to medium term horizon.

 

[RaleBulgarian]

Remember the parable about "Give a man a fish; teach a man to fish?" I really, really wish there were more bold job training/creating initiatives in this $1.9T bill and less direct handouts. Those handouts will be spent leaving recipients with nothing to show. New vocational skills and job creation last a lifetime.

Ya know, those “handouts” will put food on people’s tables, their utilities paid, medicines bought, etc..

Also, what makes you think vocational schools won’t receive any funds?