You must spread some Reputation around before giving it to Pookie again.
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Originally Posted by h8kurdt
Bullshit.
You
seem to think that any debt is good debt and acceptable. There is good debt but the debt most countries are in is crippling. You only have to look Spain, Greece and Portugal to see what debt is doing.
And the fact is that one of the reasons we're (Brits and Americans alike) in so much debt and the recession has hit so hard is that people were borrowing more than they could ever afford.
Whilst the republicans idea of clearing the debt is basically lower taxes and have huge swathes of cuts mostly affecting the poor and middle class is a bad idea and has been proved to not work (you only have to look at the stumbling Britain's economy is going through). You can't just spend willy nilly in the hope something will get better.
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I am not necessarily saying debt is good or bad, just that it is part of doing business. Spain and Greece have a different situation than the US, they accumulated a higher proportion of debt in a shorter time frame than the US has. Further, the US in the long arc will bounce back and begin to sort out its budget gaps. My real beef is not to say "debt is good or debt is bad" but to criticize hypocritical politicians who manipulate the narrative as if (a) trickle down economics isn't the problem with our revenue streams and (b) they ever substantively planned to do anything about it
What is worse, the common analogy that Americans tighten their belts when the chips are down is a farce. Americans still have mortgages, car loans, student loans, credit cards, and all kinds of other debt obligations to pay, chips down or not. Often times when folks are paycheck to paycheck, its the credit card. When folks can't exactly afford the car they'd like, its the car loan. Dreaming big for a house? Mortgage. Need to repair or add on? Refinance. See what I mean? Debt is part of doing business. Structural budget gaps/deficits contribute to long term debt, true, but that is a separate issue than just talking about the national debt in general.
How do small business grow? Bank loans, investors, even venture capitalists. See, borrowing and spending is reality. The problem is that right now corporations are sitting on $ TWO TRILLION in capital and the government is short about 1 TRILLION a year, so clearly we see where the money went