Friday, December 19, 2008

Fred Thompson on the Economy

"Trying to fix problems caused by excess consumption with more spending is like telling a fat guy that the way to lose weight is to eat more donuts"

I`M WITH FRED

- Secure our borders!
- Kill the Terrorists!
- Punch the Hippies!

2 comments:

Lars said...

Selv om Thompson her treffer spikeren på hodet så er han nok dessverre en stor tullebukk på lik linje alle de andre tullebukkene som skal omfordele penger, trykk penger, skape inflasjon, for så forjeves forsøke å redde bedrifter som burde gått konkurs.
Såvidt meg bekjent har han ingen integritet. Hvor vil han kutte i budsjettene? Er han kategorisk på å fjerne velferdsstaten? Her et klipp (http://www.youtube.com/watch?v=FZWt897p7tY) når han ble spurt om statlig bruk av penger (som staten ikke har)fra Ron Paul. Da bare ler han, og det virker ikke osm han skjønner problemet med dette.
Enda et klipp (http://www.youtube.com/watch?v=1ifLEZwfc88) hvor han snakker om sosialtrygd. Hans forslag? Ikke å fjerne driten! Å inflasjonsjustere den!

mrtn said...

Jackass (Thompson).

Elementary: the problem isn't caused by spending. He slips it into the actual causes - the trading of toxic securities, leading to subprime lending causing the collapse of the housing market and the banks that traded the loans around. This causes liquidity crises and is hurling us into a recession, which is going to hit the real economy very hard, causing massive unemployment and retard economic growth for many years.

The keynesian solution is massive government spending. It worked even when half-assedly tried during the New Deal. What prez-el Obama is doing is actual keynesianism. A New New Deal done right. The ridiculous assertion that spending won't work is capped by a parable which doesn't apply to the situation at all. A more suitable analogy than the fat guy is someone with a bleeding wound (liquidity problem) getting a bandage and a blood transfusion instead of a tourniquet - which will stop the bleeding, but help you lose a limb.