Shotty For Congress

[KuroiXHF]

What is the impact of creating a deficit?

Like, please explain to me in economic terms why you think that is a bad thing. Please provide illustrative examples.

...You want me to explain why it's bad for the government to have a deficit?

[Psyche]

mhm me too

[Psyche]

i think ill find a better response using google too

[Thestatusquo]

What is the impact of creating a deficit?

Like, please explain to me in economic terms why you think that is a bad thing. Please provide illustrative examples.

...You want me to explain why it's bad for the government to have a deficit?

Yes. I have a degree in economics and I intend to respond to you by illustrating that deficits are not bad.

But I'd like to hear why you think they are before I do so.

[Psyche]

https://www.washingtonpost.com/news/won ... -deficits/

the wonks at the washington post don't think deficits are so bad as long as they're of manageable size and they aren't really alone i want to hear a reasonable alternative opinion

[drmyshottyizsik]

i can't, even,,, why is barrowing money and not being able to pay it bak bad... I mean,,. really?

[Thestatusquo]

Shotty at some point if you really do intend to go into politics, you might want to consider the possibility that you do not know everything about everything.

Nor are deficits and "borrowing money and not being able to pay it back" the same thing. The part you're missing there is that government debt merely represents private wealth.

But I'm having a conversation with someone else here, you've made it quite clear that you don't want any further explanations from me. (or anyone, really.)

[Psyche]

http://www.cbsnews.com/news/government- ... -the-ugly/

this article is sort of balanced-looking
argues that deficits are good in the short run and bad in the long run

That's why economists who have supported the use of monetary and fiscal policy to ease the effects of the recession are recommending that we continue the stimulus for now, or at least that we don't make things worse by reducing spending or raising taxes before the economy is on better footing. We do have a deficit problem, and it must be addressed over the medium and longer term in order to avoid the negative effects described above. But reducing the deficit before the economy is on solid footing can be counterproductive â€" it could slow the recovery or even cause a setback.

If we are smart â€" if we continue to help the economy now and implement a credible deficit reduction strategy over the longer term â€" the good can triumph over the bad and the ugly.

in my experience reading too many thinkpieces, this is probably the mainstream perspective on the issue

[Thestatusquo]

Depends on which school of economic thought you're looking at psyche, but in general yes, most people argue that deficits can be harmful in the long run. Modern monetary theory and the sectoral balances model would disagree, but explanation would require me talking a lot about fiat currency and monetary policy, which would probably go over peoples heads and not further the discussion very much.

[Psyche]

i can't, even,,, why is barrowing money and not being able to pay it bak bad... I mean,,. really?

yeah that's not quite what a deficit is

wikipedia sort of echoes what i said before about the different perspectives in economics on the issue:

The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit (i.e., permanent deficit): The government should run deficits during recessions to compensate for the shortfall in aggregate demand, but should run surpluses in boom times so that there is no net deficit over an economic cycle (i.e., only run cyclical deficits and not structural deficits). This is derived from Keynesian economics, and gained acceptance (especially in the Anglo-Saxon world) during the period between the Great Depression in the 1930s and post-WWII in the 1950s.[citation needed]

This position is attacked from both sides: Advocates of fiscal conservatism argue that deficit spending is always bad policy, while some post-Keynesian economists—particularly post-Keynesian Chartalists—argue that deficit spending is necessary, and not only for fiscal stimulus

but gosh there's no citation!

since im such an establishment shill though if i were a policy maker i would just do whatever mainstream economists tell me to, with exceptions for special interests and political favor

of course trusting a social scientist only ever promises pain and ruin

[KuroiXHF]

Alright, I'll bite.

Moral:
- It is wrong to sustain a deficit because you'd be using money you don't own. It's not right for me to keep telling my friends, "Thanks for helping me move to my new place. I'll get ya back!"

Economic:
- It increases inflation, therefore cheapening the dollar.
- Increases payback rate, requiring more to pay back. It's like when you withdraw more money than you have, you have to replenish the missing amount then have even less until your next paycheck.
- If unable to pay back, it lowers the country's credit rating.
- It can lead to us defaulting on loans.
- High interest rates from other countries.
- We've been having quite the difficult time with debt ceilings, haven't we? We don't have infinite resources.

[drmyshottyizsik]

since I'm driving I just say ^^^^

[Psyche]

not the mainstream view~

[Thestatusquo]

Can't respond to that now because I'm at work, but your understanding of economics needs some work! Don't worry, I'll explain when I get off.

[KuroiXHF]

Can't respond to that now because I'm at work, but your understanding of economics needs some work! Don't worry, I'll explain when I get off.

You're not a pimp, are you?

[Thestatusquo]

I wish.

[ConManMick]

Immigration platform?

[Untrod Tripod]

i can't, even,,, why is barrowing money and not being able to pay it bak bad... I mean,,. really?

"economics is a simple field that any layperson can instantly and instinctively understand better than trained professionals with decades of experience in the field and centuries of research and writing to back up their methods of analysis"

this is what you are saying when you "disagree" with economists

crossssssssssssssssssssssposting

[Thestatusquo]

To be fair, there are economists that holds similar positions to shotty, they're just in the minority and I don't think he shares their justifications or academic rigor.

[Rob14]

The costs of private prisons exceed the costs of public prisons when you factor in the increased likelihood of reoffending. They have a profit motive to rehabilitate as few prisoners as possible. You can't just compare the costs of one prisoner; you have to consider the costs of that prisoner coming back down the road and the costs incurred when private prisons lobby for harsher sentences and more criminalization of drugs, etc. These are all real things that private prisons do.

[drmyshottyizsik]

rob, non profit prisons?

[KuroiXHF]

Rob, do you think that public prisons do anything for reduce recidivism?

[drmyshottyizsik]

definitely implied it

[ConManMick]

immigration?

[drmyshottyizsik]

still working will get there,