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View Full Version : Economics Chart Of The Day: Entitlements Or Growth


Comrade Crapski
09-25-2012, 08:07 AM
From Bloomberg Briefs:


"Policy choices made in the near-term will affect the economy for years to come. If not addressed, current debt and spending dynamics will probably lead to a reduced growth path, placing at risk expenditures on vital social programs and, over time, crowding out private sector borrowing that funds the gross private domestic investment necessary to boost productivity and living standards. Dollars spent on entitlements dwarf those spent on discretionary items such as education, and tower over net fixed business investment, which is partially responsible for greater productivity, business expansion and rising living standards. Periods with greater investment as a share of GDP are highly correlated with both faster economic growth and rising living standards. One risk to the U.S. economy is that rising entitlement spending will require the government to borrow from the finite amount of capital held by private savers, thus squeezing out private firms that need the capital to expand businesses and increase productivity."

Who needs private business when you have infinite toner cartridge and politicians who need to be reelected with promises of, well, everything.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/09/entitlements%20vs%20business_0.jpg

http://www.zerohedge.com/news/2012-09-25/chart-day-entitlements-or-growth

patteeu
09-25-2012, 08:32 AM
People who support Obama don't understand that economic growth is the most important domestic policy goal we could possibly have. It's more important than health care cost containment (price will ultimately contain consumption until we can figure that one out) and it's far more important than any perceived fairness in the tax code. Without growth, the cliff is inevitable and when you go over the cliff, it doesn't matter if your abortificants are covered by your healthcare insurance or if you've managed feel good about sticking the rich with a high tax rate.

J Diddy
09-25-2012, 08:45 AM
People who support Obama don't understand that economic growth is the most important domestic policy goal we could possibly have. It's more important than health care cost containment (price will ultimately contain consumption until we can figure that one out) and it's far more important than any perceived fairness in the tax code. Without growth, the cliff is inevitable and when you go over the cliff, it doesn't matter if your abortificants are covered by your healthcare insurance or if you've managed feel good about sticking the rich with a high tax rate.

And economic growth is happening. I have no reason to believe Romney and his policies will do anything about that. In fact, I've hard nothing from Romney to indicate that he has anything to say about that. But you condemn us for following blindly. Please tell me exactly what you think Romney will do to boost the economy.

T-post Tom
09-25-2012, 08:50 AM
Time to end all of the entitlements for big biz, defense contractors and wealthy loophole artists that pay lower rates than their secretaties? Ok, I'm in.

patteeu
09-25-2012, 08:52 AM
And economic growth is happening. I have no reason to believe Romney and his policies will do anything about that. In fact, I've hard nothing from Romney to indicate that he has anything to say about that. But you condemn us for following blindly. Please tell me exactly what you think Romney will do to boost the economy.

Romney's whole tax plan is about economic growth. It follows some of the main economic growth prescriptions of the Bowles-Simpson commission. Where have you been?

J Diddy
09-25-2012, 08:59 AM
Romney's whole tax plan is about economic growth. It follows some of the main economic growth prescriptions of the Bowles-Simpson commission. Where have you been?

Romneys whole tax plan? When have you been privy to Romney's whole tax plan? The only specifics about his tax plan have been to lower taxes and decrease deductions and those aren't specific because he's refused to tell us what deductions or taxes he plans to lower. Preferring to wait and tell us after he's elected. In fact he's said that the only difference will be that the middle class "might" see a small break. (60 minutes)

You're sucking the dick of a guy because he's not Obama, but don't know shit about.

KC native
09-25-2012, 09:05 AM
Romney's whole tax plan is about economic growth. It follows some of the main economic growth prescriptions of the Bowles-Simpson commission. Where have you been?

No, Romney's tax plan is warmed over, discredited supply side economics.

patteeu
09-25-2012, 09:27 AM
Romneys whole tax plan? When have you been privy to Romney's whole tax plan? The only specifics about his tax plan have been to lower taxes and decrease deductions and those aren't specific because he's refused to tell us what deductions or taxes he plans to lower. Preferring to wait and tell us after he's elected. In fact he's said that the only difference will be that the middle class "might" see a small break. (60 minutes)

You're sucking the dick of a guy because he's not Obama, but don't know shit about.

Yes, while you don't know all the specifics (although you should know some), the main thing you need to know about his plan wrt economic growth is that he reduces top marginal rates on both individuals and business while eliminating deductions and that he keeps rates on capital low. By contrast, Obama wants to raise top marginal rates (at least on upper income groups), raise rates on capital and create more deductions. The one thing Obama has said that makes some economic sense is that he's open to the idea of lowering the top rate on business. We don't need to know the fine details of those plans to understand that one is pro-growth and the other is the left wing's idea of fairness (at the expense of growth).

KC native
09-25-2012, 09:44 AM
Just read the brief this came from. Misleading thread title FTW!

The brief doesn't give an either/or case for entitlements. It covers multiple data series to give a picture of what's going on (taxes, spending cuts, and entitlement funding) and the short/medium term prospects if nothing is done.

Calcountry
09-25-2012, 11:42 AM
People who support Obama don't understand that economic growth is the most important domestic policy goal we could possibly have. It's more important than health care cost containment (price will ultimately contain consumption until we can figure that one out) and it's far more important than any perceived fairness in the tax code. Without growth, the cliff is inevitable and when you go over the cliff, it doesn't matter if your abortificants are covered by your healthcare insurance or if you've managed feel good about sticking the rich with a high tax rate.they don't want "rich" people to have growth. THey just want to spread the "rich" peoples wealth around.

Go ahead liberals, just remember one thing, "you can sheer a sheep many times, but you can only skin it once."