What do you think needs to be done to turn the economy around?

[Neu!Turismo]

I Wish I Knew...

But we need to abandon this insipid, wrongly-called "laissez faire" paradigm ala Milton Friedman and Co. that has rotted our political economy to its core. We're seeing the results of what has been a generation or so of deregulation and greed that has disproportionately rewarded the overlords and their sycophants. This statist - "laissez faire" myth that we've blindly followed has resulted in so much selfishness and national debt we've screwed ourselves royally.

It's really beyond the economy. It's fundamentally a social and moral issue.

The fiscal and socially inequity must be corrected.

We all pick our chains. What's the next set? There is no more Good Society, but there never really was one to begin with.

 

[30ashopper]

But we need to abandon this insipid, wrongly-called "laissez faire" paradigm ala Milton Friedman and Co. that has rotted our political economy to its core. We're seeing the results of what has been a generation or so of deregulation and greed that has disproportionately rewarded the overlords and their sycophants. This statist - "laissez faire" myth that we've blindly followed has resulted in so much selfishness and national debt we've screwed ourselves royally.

It's really beyond the economy. It's fundamentally a social and moral issue.

The fiscal and socially inequity must be corrected.

We all pick our chains. What's the next set? There is no more Good Society, but there never really was one to begin with.

You're missing a few points, laissez-faire economics didn't create this mess, the government's invasion of the free economy created it. What are Freddie and Fannie? Why were these entities able to gamble with billions without worrying about the consequences? Why are banks that bet it all on mortgage backed securities currently getting bailed out? This is not a free market, this is socialism "for the rich". What helped create and perpetuate this pipe dream of the ownership society? It was government. Why were people so willing to borrow? It was due to low interest rates which are controlled, by the government. The sooner we eliminate government from free markets, the better off we'll be.

 

[scooterbug44]

How about the obvious benefits of trading your time at a 1 for 10 ratio. Scooterbug44 or her neighbors gets to go work for an hour and then gets to purchase 10 hours labor of the chinese. Given the choice of a $10 toaster that browns my bread and a $60 toaster that browns my bread, I'll buy the $10 toaster every time. Let the Americans do something better with their time than producing over priced toasters, unless you think they are unable? We don't have to compete with developing nations for menial jobs yet, there are other, better areas in which to devote our efforts. There is not always going to be people willing to give so much of their time for so little of ours..make use of it while it lasts, parity is coming.

I'll buy the $60 toaster because it won't be full of lead, will have directions I can read, because the local store I bought it at can tell me about the toaster options, and because I am a realist about what that crappy arse $10 toaster REALLY costs.

My idea of "value" does NOT include taking advantage of slave labor and sweatshops so I can feel better about myself by racking up debt, weakening my country, putting my neighbors out of work, and buying crap I don't need.

 

[Miss Kitty]

I'll buy the $60 toaster because it won't be full of lead, will have directions I can read, because the local store I bought it at can tell me about the toaster options, and because I am a realist about what that crappy arse $10 toaster REALLY costs.

My idea of "value" does NOT include taking advantage of slave labor and sweatshops so I can feel better about myself by racking up debt, weakening my country, putting my neighbors out of work, and buying crap I don't need.

I think I like this!

 

[traderx]

1. Abolish the corporate income tax. US corporations are the second heaviest taxed in the world. This puts us at a disadvantage in selling our good abroad. The idea of a corporate income tax is silly anyway. Consumers pay the tax in the form of inflated prices.

2. Lower individual tax rates to the levels established by Reagan, 15% and 28%. This would free enourmous amounts of capital which would have a rippling economic effect.

3. Reduce government spending. The current federal tax "revenue" is $4.053 trillion yet we are spending $4.904 trillion which means a current budget deficit of almost $900 billion. The deficit in 2009 could easily be $1 trillion. The amount our federal government spends equates to $46,705 per household. The federal debt will be over $10 trillion by year end. This is unsubstainable. We can never have a balanced budget by raising the Government's revenue. Congress has proven that it has an insatiable spending appetite. We have to cut spending.

4. Get rid of the SEC and the Fed for starters.

5. I hate to say it but let's have a renewal of buy American goods and services. We keep sending our money to Europe and Asia and wonder why the dollar has fallen.

 

[LuciferSam]

I'll buy the $60 toaster because it won't be full of lead, will have directions I can read, because the local store I bought it at can tell me about the toaster options, and because I am a realist about what that crappy arse $10 toaster REALLY costs.

My idea of "value" does NOT include taking advantage of slave labor and sweatshops so I can feel better about myself by racking up debt, weakening my country, putting my neighbors out of work, and buying crap I don't need.

The $10 toaster might very well burn your house down.

 

[Neu!Turismo]

You're missing a few points, laissez-faire economics didn't create this mess, the government's invasion of the free economy created it. What are Freddie and Fannie? Why were these entities able to gamble with billions without worrying about the consequences? Why are banks that bet it all on mortgage backed securities currently getting bailed out? This is not a free market, this is socialism "for the rich". What helped create and perpetuate this pipe dream of the ownership society? It was government. Why were people so willing to borrow? It was due to low interest rates which are controlled, by the government. The sooner we eliminate government from free markets, the better off we'll be.

Not missing any points. I called it statist.
There is no such thing as a free market. There never will be.
Laissez-faire is a myth.

I believe that Madison Avenue and Wall Street have more to do with this pipe dream ownership society than the government though.

Honestly, Friedman and the Chicago School have never really had any substantial impact on policy. Friedman has had enormous influence everywhere else. The new Keynesians are running the show as far as most policy goes.

 

[User 3]

1. Abolish the corporate income tax. US corporations are the second heaviest taxed in the world. This puts us at a disadvantage in selling our good abroad. The idea of a corporate income tax is silly anyway. Consumers pay the tax in the form of inflated prices.

2. Lower individual tax rates to the levels established by Reagan, 15% and 28%. This would free enourmous amounts of capital which would have a rippling economic effect.

3. Reduce government spending. The current federal tax "revenue" is $4.053 trillion yet we are spending $4.904 trillion which means a current budget deficit of almost $900 billion. The deficit in 2009 could easily be $1 trillion. The amount our federal government spends equates to $46,705 per household. The federal debt will be over $10 trillion by year end. This is unsubstainable. We can never have a balanced budget by raising the Government's revenue. Congress has proven that it has an insatiable spending appetite. We have to cut spending.

4. Get rid of the SEC and the Fed for starters.

5. I hate to say it but let's have a renewal of buy American goods and services. We keep sending our money to Europe and Asia and wonder why the dollar has fallen.

We have to start hiring Americans as well.

 

[Neu!Turismo]

4. Get rid of the SEC and the Fed for starters.

5. I hate to say it but let's have a renewal of buy American goods and services. We keep sending our money to Europe and Asia and wonder why the dollar has fallen.

4. Never going to happen. Unless we have a political revolution.

5. Shouldn't hate saying that. Especially more locally-produced, artisanal goods.

 

[elgordoboy]

I'll buy the $60 toaster because it won't be full of lead, will have directions I can read, because the local store I bought it at can tell me about the toaster options, and because I am a realist about what that crappy arse $10 toaster REALLY costs.

My idea of "value" does NOT include taking advantage of slave labor and sweatshops so I can feel better about myself by racking up debt, weakening my country, putting my neighbors out of work, and buying crap I don't need.

That is idealism not realism. Through the magic of "money" your time is worth more than that of a person in a developing nation. Drop the both of you off on an island and things would reach parity very quickly, or even worse, perhaps your time is worth less than theirs because they have better "technology"(they know how to find bugs that are edible etc.) than you. And while it may be nice to think that everything that comes from outside the US is a piece of crap, it just isn't true. Buy the foreign toaster for 10$ and give your neighbor $30 to sit on the porch with you and drink sweet tea. Everyone wins, including the "sweatshop slave" that otherwise wouldn't have been able to get a bowl of rice. Nothing has been added to the economy by actually producing a luxury item like the toaster here anyway as you could reach the same effect by poking a stick through two pieces of bread and holding them over a fire. Or do without toast period and thus "save" time and money (and time is money). I will stop talking about toasters .