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View Full Version : U.S. Issues Clyburn: 'We've got to spend our way out of this recession'


petegz28
02-01-2010, 05:39 PM
The U.S. government must spend its way out of the recession, the Democrats' third-ranking House leader stressed Monday.

Rep. James Clyburn (D-S.C.), the House majority whip, said that trying to find greater savings in the budget, which was released by President Barack Obama this morning, wouldn't help alleviate the recession.

"We've got to make some decisions here as to what's in the best interests of our country going forward," Clyburn said during an appearance on Fox News. "And I think the best interest is to invest in education, control these deficits, while at the same time trying to get people back to work."

"We're not going to save our way out of this recession," the majority whip added. "We've got to spend our way out of this recession, and I think most economists know that."

Obama's budget, which was unveiled Monday morning, calls for $3.8 trillion in spending for 2010, but is projected to cause a $1.27 deficit.

A number of key Democrats in Congress have responded to the proposal, including House Appropriations Committee Chairman David Obey (D-Wis.), who said lawmakers would seek to abide by spending freezes within the budget, but seek to extend caps to defense and national security spending, too.

Some other Democrats have worried that without expanded spending on social programs and other elements of the budget, some people hit hardest by the recession would be disadvantaged by the budget.

Clyburn suggested that talk of reducing the deficit was moot as long as the economy remained sluggish in the foreseeable future.

"You're not going to bring down the deficits, you're not going to eliminate these problems without growing this economy," he said. "And you're not going to grow the economy by wishing it; you've got to invest in it. And that's what we're doing with this budget."

http://thehill.com/blogs/blog-briefing-room/news/79039-clyburn-weve-got-to-spend-our-way-out-of-this-recession

KILLER_CLOWN
02-01-2010, 06:00 PM
Everytime i hear this line i cringe and brace for impact.

The Mad Crapper
02-02-2010, 06:21 AM
We'll be Zimbabwe in no time.

http://thepeoplescube.com/images/Obama_Copenhagen_160.jpg

Ebolapox
02-02-2010, 06:51 AM
really? REALLY? jesus fucking CHRIST the american people are fucking retarded--why do we keep electing these morons, anyway (that includes those to the right side of the isle as well)

BucEyedPea
02-02-2010, 07:49 AM
I think the American people don't like it either. These are the elitists talking about spending more.

Jenson71
02-02-2010, 08:02 AM
That's basically my understanding of a significant part of Keynesian economics.

DJ's left nut
02-02-2010, 08:12 AM
That's basically my understanding of a significant part of Keynesian economics.

If Keynesian economics has any merit (arguable), it still won't fly in this environment.

The idea is to stimulate the economy through 'adding' wealth through government spending (see: turning on the presses). Unfortunately, consumer confidence is so low that no amount of government pressure is going to encourage the rampant consumerism needed to pull the economy back on line. Furthermore, Chairman Obamao has business leaders so gunshy that we aren't getting much in the way of private sector spending (which the gov't whackos seem to forget is still the lynchpin of Keynsian economics; gov't spending is just the starter motor for the large block under the hood).

In this environment this is nothing more than more platitudes and handouts; just another political parlor trick designed to devalue accumulated wealth and save some face for the Democrats.

ChiefaRoo
02-02-2010, 08:14 AM
That's basically my understanding of a significant part of Keynesian economics.

Don't try to legitimize this crap. The interest the US is going to be paying on its debt will cripple us as a nation if our country doesn't start making fiscally sound decisions again.

ChiefaRoo
02-02-2010, 08:15 AM
If Keynesian economics has any merit (arguable), it still won't fly in this environment.

The idea is to stimulate the economy through 'adding' wealth through government spending (see: turning on the presses). Unfortunately, consumer confidence is so low that no amount of government pressure is going to encourage the rampant consumerism needed to pull the economy back on line. Furthermore, Chairman Obamao has business leaders so gunshy that we aren't getting much in the way of private sector spending (which the gov't whackos seem to forget is still the lynchpin of Keynsian economics; gov't spending is just the starter motor for the large block under the hood).

In this environment this is nothing more than more platitudes and handouts; just another political parlor trick designed to devalue accumulated wealth and save some face for the Democrats.

This is an excellent post.

BucEyedPea
02-02-2010, 08:22 AM
If Keynesian economics has any merit (arguable), it still won't fly in this environment.

The idea is to stimulate the economy through 'adding' wealth through government spending (see: turning on the presses). Unfortunately, consumer confidence is so low that no amount of government pressure is going to encourage the rampant consumerism needed to pull the economy back on line. Furthermore, Chairman Obamao has business leaders so gunshy that we aren't getting much in the way of private sector spending (which the gov't whackos seem to forget is still the lynchpin of Keynsian economics; gov't spending is just the starter motor for the large block under the hood).

In this environment this is nothing more than more platitudes and handouts; just another political parlor trick designed to devalue accumulated wealth and save some face for the Democrats.

In one of my Austrian economics books they talk about how there are times when the govt spending still won't lead to more demand, increased velocity of money to move an economy. Not that the latter is exactly a good thing either because that just means the velocity is the attempt to get rid of bad money faster—what Keynesians think is a good thing and a sign of increased production. Lol what morons. Intelligent people actually believe that crap.

KC native
02-02-2010, 08:47 AM
If Keynesian economics has any merit (arguable), it still won't fly in this environment.

The idea is to stimulate the economy through 'adding' wealth through government spending (see: turning on the presses). Unfortunately, consumer confidence is so low that no amount of government pressure is going to encourage the rampant consumerism needed to pull the economy back on line. Furthermore, Chairman Obamao has business leaders so gunshy that we aren't getting much in the way of private sector spending (which the gov't whackos seem to forget is still the lynchpin of Keynsian economics; gov't spending is just the starter motor for the large block under the hood).

In this environment this is nothing more than more platitudes and handouts; just another political parlor trick designed to devalue accumulated wealth and save some face for the Democrats.

:shake: Keynes only advocated increased government spending as a temporary measure to counteract troughs in the business cycle. He never said it adds wealth and said it is undesirable to have government spending be an outlet for growth for an extended period of time.

KC native
02-02-2010, 08:49 AM
In one of my Austrian economics books they talk about how there are times when the govt spending still won't lead to more demand, increased velocity of money to move an economy. Not that the latter is exactly a good thing either because that just means the velocity is the attempt to get rid of bad money faster—what Keynesians think is a good thing and a sign of increased production. Lol what morons. Intelligent people actually believe that crap.

If you actually understood Keynes then you wouldn't butcher his theories like this. The goal of Keynesian spending isn't to increase demand but to reduce troughs and Keynes only advocated doing it for short periods of time.

The fact that you still don't understand how the velocity of money works doesn't surprise me.

DJ's left nut
02-02-2010, 08:51 AM
:shake: Keynes only advocated increased government spending as a temporary measure to counteract troughs in the business cycle. He never said it adds wealth and said it is undesirable to have government spending be an outlet for growth for an extended period of time.

Correct.

You seem to realize that; anyone that says government is engaging in Keynsianism right now surely doesn't (i.e. Jenson).

Like I said, Keynes saw gov't spending as the starter motor; Washington is not treating it as such.

You're conflating what Keynes meant with what Washington's doing and in so doing have proven my point for me - there's nothing 'Keynesian' about what Clyburn et al., are up to.

KC native
02-02-2010, 08:54 AM
Correct.

You seem to realize that; anyone that says government is engaging in Keynsianism right now surely doesn't (i.e. Jenson).

Like I said, Keynes saw gov't spending as the starter motor; Washington is treating it as such.

You're conflating what Keynes meant with what Washington's doing and in so doing have proven my point for me - there's nothing 'Keynesian' about what Clyburn et al., are up to.

Not at all. The government has been trying to stop the economy from driving off a cliff. So far they have done a decent job. The problem is that they need to start easing off the throttle.

DJ's left nut
02-02-2010, 09:01 AM
Not at all. The government has been trying to stop the economy from driving off a cliff. So far they have done a decent job. The problem is that they need to start easing off the throttle.

Even presuming that they've done it right thus far, they certainly appear to have their heels to the floorboard, no?

KC native
02-02-2010, 09:03 AM
Even presuming that they've done it right thus far, they certainly appear to have their heels to the floorboard, no?

Yes, like I've said before we really need to start working on exit strategy for support at this point.