Obama and Economics: Intellectually Clueless

[Sandokan]

But that does not mean that the government cannot stimulate the economy. Just because I invest in a particular stock and that stock goes down does not mean that stocks are bad investments. It just means that I made a poor choice.

Of course the Government can stimulate the economy. But Government doesn’t create wealth, it expend wealth. Government role is to create conditions for the private sector to grow and hire more workers creating wealth. Government should favor competition, be on the side of supply and demand, and helping to provide a healthy and well-educated middleclass workforce.

 

[obvious Child]

President Obama, as most Democrats, fallow the Keynesian theory with respect to the economy, which try to stimulate the economy with increased government spending.

Supply side economics argue that lower taxes and less regulation will create economic growth, since tax cut cost will be offset by increase in tax revenue. If the 787 million stimulus program would has been used in tax cuts, the economy would be sizzling, and new business and employment created.

Oh boy.

Let's get something real basic first.

This is a financial liquidity crisis. Keynesian theory will not work. However, neither will supply side economics. The avaliable tools that first world countries have to deal with financial crisis can be counted on one hand. And in our case, only ONE of them is avaliable. The problem is that the one tool is direct government lending similar to China today and how South Korea and Japan did it in the 80s to boost their economies. That is effectively Socialism.

Obama likely knows this. However, doing nothing is arguebly worse on a political scale. Calling Obama clueless for utilizing an imperfect tool to at least reduce the flak he takes is stupid.

And remember NONE OF YOU DETRACTORS have been able to give me a single reason why financial crises are different and why the normal tools don't work. You all just run away.

 

[Sandokan]

Obama "green jobs" rings like a winner. He can promise to reduce unemployment and at the same time save the planet from “climate change.” Government promises that its programs will create jobs. Creating jobs by the government it isn’t difficult. But would wealth be created? Of course it won’t. For example, the jobs created by rebuilding the buildings and infrastructure destroyed by a hurricane, don’t create wealth. What it does is to create conditions for the recovery of the affected geographical area. Those conditions in turn will allow the private sector to create wealth.

 

[obvious Child]

Of course the Government can stimulate the economy. But Government doesn’t create wealth, it expend wealth. Government role is to create conditions for the private sector to grow and hire more workers creating wealth. Government should favor competition, be on the side of supply and demand, and helping to provide a healthy and well-educated middleclass workforce.

So all of the technological advances from military and NASA aren't wealth? All of the drugs the NIH made aren't wealth?

 

[obvious Child]

So Sandokan, are you capable of a rebuttal or are you simply going to pretend everyone who points out how lame, weak, pathetic and invalid your arguments are don't exist?

 

[Sandokan]

Obama wasn’t responsible for generating a profit in any of his previous jobs. I believe that for him profit is a four letter word. His entitlement mentality is that those companies that make a profit should give it back to the Government in the form of taxes and it will redistributed to those who did not make a profit.

If a second stimulus bill is approved, more Government jobs will be created and do very little for the economy. The increase of jobs in the Government payroll will have the effect of making more people dependable on it. The offshore drilling band if not removed will cause more jobs loses. New programs that require money shall have allocated funds to extract from.

 

[obvious Child]

Obama wasn’t responsible for generating a profit in any of his previous jobs.

So lawyers aren't responsible for generating profits by keeping costs down and billing high rates or are you just going to run away from another post showing how lame your arguments are?

Furthermore, I take it you are completely unaware of how colleges treat units as profit centers or are you just going to run away from another post showing how lame your arguments are??

 

[Sandokan]

The primary elections suggest that the American electorate has wakes up. We could reverse the direction of the country is going in the upcoming elections. In the next three years the federal debt will surpass the GDP if no changes are implemented, and if it happens the country will be on the verge of a catastrophe.

 

[obvious Child]

Sandokan, this is a debate board. If you want to soapbox where you won't be challenged or have to defend your posts, start a blog with disabled viewer comments.

 

[imagep]

So lawyers aren't responsible for generating profits by keeping costs down and billing high rates or are you just going to run away from another post showing how lame your arguments are?

Furthermore, I take it you are completely unaware of how colleges treat units as profit centers or are you just going to run away from another post showing how lame your arguments are??

I believe the point was that Obama was never a business manager. Attornies generally bill clients for every penny spent (copies, stamps, airfare), so excess spending in law firms does not neccasarally reduce their profitability. College profesors don't get bonuses based on saving the college money and are unlikely to be involved with financial operational decision making.

 

[Sandokan]

I believe the point was that Obama was never a business manager.

You got it right.

Progressives don’t like the tax system where a taxpayer who pays $50,000 per year gets a $500 tax cut, and another who pays $200 only gets a $50 cut. The years following the tax relieve in 2003, the annual revenues rates increased by double digit and the spending increased by single digit. If they could, they will not give a tax cut to the one paying $50,000 and will eliminate the tax on the other one, reversing what happened after the 2003 tax relieve, which will increase the deficit.

 

[Orion]

People who think that one man alone has the independent knowledge to make economic decisions or that one man alone has the power to affect the entire economic system are completely delusional.

 

[Geo Patric]

obama was not an astronaut either... or a baker... of a nuclear physicist.

that is about as lame an argument as i have heard.

geo.

 

[obvious Child]

I believe the point was that Obama was never a business manager.

So?

Attornies generally bill clients for every penny spent (copies, stamps, airfare), so excess spending in law firms does not necessarily reduce their profitability.

But that's not quite the same thing we're discussing. Sandokan is his ignorant argument said that Obama wasm't responsible for generating profits. But that's how law firms generate profits. Large amounts of billings while keeping costs down. What lawyers do all of the time. Basically Sandokan's dumb argument is that Obama as a lawyer billing at high rates didn't generate profit.

College profesors don't get bonuses based on saving the college money and are unlikely to be involved with financial operational decision making.

Yes and no. Many colleges allocate money to divisions within schools by demand. By generating greater demand for division, professors can in fact generate increased "profit" per se in the academic world. I know my business school operated on a profit center strategy.

Point still is that Sandokan doesn't like being challenged. Notice he has yet to reply to any of my posts.

 

[obvious Child]

obama was not an astronaut either... or a baker... of a nuclear physicist.

that is about as lame an argument as i have heard.

geo.

What can you expect from a OP who refuses to respond to anyone who disagrees with him?

 

[Geo Patric]

What can you expect from a OP who refuses to respond to anyone who disagrees with him?

dunno. i can understand disagreeing with him... but... to deny his very obvious intelligence is just hysterical.

geo.

 

[Sandokan]

One of the things that creates inflation is an increase in the supply of money.

The single most important tax cut we can make is reducing the corporate income tax rate. We fleece our corporations over here, and then throw a fit when they move operations overseas. Personal income tax, sure great whatever.... we need to drop that 40% corporate rate by half. That would fix so many problems.

Of course, it would need to be met by a fairly massive cut in spending as well.

 

[TurtleDude]

One of the things that creates inflation is an increase in the supply of money.

The single most important tax cut we can make is reducing the corporate income tax rate. We fleece our corporations over here, and then throw a fit when they move operations overseas. Personal income tax, sure great whatever.... we need to drop that 40% corporate rate by half. That would fix so many problems.

Of course, it would need to be met by a fairly massive cut in spending as well.

libs mainly believe corporations exist to service the public teat. They whine when those who start corporations tire of being looted by parasitic politicians.

its the same with individuals/. I don't earn lots of money to fund parasites breeding and spawning more parasites. its time for Atlas to shrug and end the increasing cycle of dependency

 

[phattonez]

One of the things that creates inflation is an increase in the supply of money.

The single most important tax cut we can make is reducing the corporate income tax rate. We fleece our corporations over here, and then throw a fit when they move operations overseas. Personal income tax, sure great whatever.... we need to drop that 40% corporate rate by half. That would fix so many problems.

Of course, it would need to be met by a fairly massive cut in spending as well.

You can start locally. Vote against local business taxes and keep taxes low in your city. It's bad enough to get it from the state and feds, but at least you can change things locally where your opinion has much greater sway.