Obamaman Can!

[statdoc]

http://www.youtube.com/watch?v=zhhkF3dqXR0

Obamaman Can!

[AzX5]

Funny, cause it's true....

[Wagner]

AWESOME.

[X5rolls]

Pretty funny

[JCL]

Funny.

[E61Silver]

It is funny, sad though that GWB left such a mess.

It won't be so funny when he increases taxes no matter how he spins it.

[Wagner]

Originally Posted by E61Silver

It is funny, sad though that GWB left such a mess.

It won't be so funny when he increases taxes no matter how he spins it.

Obama in less than 150 days more than tripled G'dubs deficit. Go Change.

[E61Silver]

Originally Posted by Wagner

Obama in less than 150 days more than tripled G'dubs deficit. Go Change.

In a recession the government pumps money into the economy which is also known a deficit spending, economics 101.

[Wagner]

Originally Posted by E61Silver

In a recession the government pumps money into the economy which is also know a deficit spending, economics 101.

Really, Reagan took taxes away, guess your economics plan is pretty cool though, did you work for AIG?

[E61Silver]

Originally Posted by Wagner

Really, Reagan took taxes away, guess your economics plan is pretty cool though, did you work for AIG?

Reducing taxes is also a way to pump more money into the economy, it may also result in increase short term deficits.

Here is some information on the subject:

Keynesian Effect

Following John Maynard Keynes, many economists recommend deficit spending to moderate or end a recession, especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending, which creates further increases in the demand for business output. (This is the multiplier effect). This raises the real gross domestic product (GDP) and the employment of labor, and if all else is constant, lowers the unemployment rate. (The connection between demand for GDP and unemployment is called Okun's Law.) Cutting personal taxes and/or raising transfer payments can have similar expansionary effects, though most economists would say that such policies have weaker effects. Which method has a better stimulative economic effect is a matter of debate.
The increased size of the market, due to government deficits, can further stimulate the economy by raising business profitability and spurring optimism, which encourages private fixed investment in factories, machines, and the like to rise. This accelerator effect stimulates demand further and encourages rising employment.
Similarly, running a government surplus or reducing its deficit reduces consumer and business spending and raises unemployment. This can lower the inflation rate. Any use of the government deficit to steer the macro-economy is called fiscal policy.
A deficit does not simply stimulate demand. If private investment is stimulated, that increases the ability of the economy to supply output in the long run. Also, if the government's deficit is spent on such things as infrastructure, basic research, public health, and education, that can also increase potential output in the long run. Finally, the high demand that a government deficit provides may actually allow greater growth of potential supply, following Verdoorn's Law.
There is, however, a danger that deficit spending may create inflation -- or encourage existing inflation to persist. (In the United States, this is seen most clearly when Vietnam-war era deficits encouraged inflation.) This is especially true at low unemployment rates (say, below 4% unemployment in the U.S.). But government deficits are not the only cause of inflation: it can arise due to such supply-side shocks as the "oil crises" of the 1970s and inflation left over from the past (inflationary expectations and the price/wage spiral). If equilibrium is located on the classical range of the supply graph, an increase in government spending will lead to inflation without affecting unemployment. There must also be enough money circulating in the system to allow inflation to persist -- so that inflation depends on monetary policy.


Deficit spending - Wikipedia, the free encyclopedia