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Kasz216 on 26 April 2013
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Tigerlure said:
thranx said:
Things in the US still have not recovered. High unemployment. High underemployment. Beginning a new housing bubble. The education bubble will have to burst sometime. Dont see how you can say we have spent ourselves into the good times when we haven't, and we still have to pay it all back. Also dont know how you can say that austerity has failed when we aren't through the mess yet. I say its too early to call right now. Why dont we wait until we are actually paying of our debt, have a good unemployment % and underemployment is a thing of the past before we declare a winner.


They've been trying that in Europe for a few years. Where has it gotten them? Some of the countries are almost entering a recession again. Maybe a few years isn't enough time, but it certainly hasn't convinced me that austerity is helpful when you're already in a weak economy.


How about 20 years?  That's about how long Japan has been trying stimulus mesures in an attempt to kickstart GDP.  

http://seekingalpha.com/article/220703-japan-s-economy-shows-limits-of-keynesian-policies

Japan's been trying to spend there way out of trouble forever now.  Once their population gets a little older and there aren't enough conservative minded investors to buy government bonds... Japan will be facing a nigh inevitable crash of gigantic proportions.

 

The truth is... when your in a bad situation.  You CAN't get out of it.  Either by Spending or Austerity.

The biggest arrogance we have is that we can fix EVERYTHING.

We really can't.

The main difference is... spending can hide the numbers on the fundamentals.  Though the poor are still going to feel the burn.  Ask any of my customers where I work where the US Recovery is... they'll say it's nowhere