US debt crisis. Let's discuss about it here. Shoot your opinions.

[Castout]

Cover story



Recent news
http://wallstreetpit.com/61984-debt-...is-yet-to-come


Not so recent news
http://www.guardian.co.uk/business/2...tens-us-cities



Umm seems a lot of US policy makers are still thinking you can spend your way to prosperity and assuming sustainable great economic growth in the long run into the future. A bit worrisome to me.

[redsocialist]

If you really want to fix a capitalist economy, inthis case the US, then they need to stop the military spending, stop all the foreign spending, stop offshoring and bring a new US manafacturing basis.

Neoliberalism is what destroyed the US economy ever since regan.

My take.

[Freiwillige]

Originally Posted by redsocialist

If you really want to fix a capitalist economy, inthis case the US, then they need to stop the military spending, stop all the foreign spending, stop offshoring and bring a new US manafacturing basis.

Neoliberalism is what destroyed the US economy ever since regan.

My take.

Wow oddly enough I almost entirely agree with him.

[Aramike]

Originally Posted by redsocialist

If you really want to fix a capitalist economy, inthis case the US, then they need to stop the military spending, stop all the foreign spending, stop offshoring and bring a new US manafacturing basis.

Neoliberalism is what destroyed the US economy ever since regan.

My take.

Military spending is the singular best way to enhance domestic manufacturing, at least in wartime.

My take is that we need to address our severe trade imbalances and require equal access to the markets of our "trading" partners. We need to leverage our buying power into selling power, and requiring equal access to the markets will mean, say, the Chinese would have to buy our products rather than merely our debt in attempts at placation.

[Castout]

Originally Posted by Aramike

My take is that we need to address our severe trade imbalances and require equal access to the markets of our "trading" partners. We need to leverage our buying power into selling power, and requiring equal access to the markets will mean, say, the Chinese would have to buy our products rather than merely our debt in attempts at placation.

That's quite hard isn't it. US has been without domestic economic development plan since I don't know when, probably ever, leaving it to the market and greed. Kind of make you wonder whether you should tie patriotism with economic endeavor.

Pragmatism will backfire in the long run. Sure US has a big economy but just how much of that proportion is dripping into the majority of people. The nightmarish situation would be for very few people having very ridiculous amount of wealth controlling and having access to much of the economy and nation's wealth while the majority of citizens are living paycheck to paycheck. If you have that how could the government get an optimum revenue? And the country will be run by few elites or mob having the power to control the politicians and bureaucrats and policies to their benefits. Better distributed wealth will boost a nation's revenue imo. Economy will be much more robust and economic growth would even be higher.

[Armistead]

SS, medicare and defense take up...did I hear about 80% of the budget. Politicains don't want to touch it, but SS and medicare owed out to those paid in is over 60 trillion and both are broke. Politicians will pass the problem another two election cycles, but both will need major cuts. Most americans know the programs will probably be gone in 15 years.

Spending on a large war machine obviously hasn't helped the economy, not to mention the high profits go to a small percent and the total cost of war, rebuilding nations nils any gain to the US economy. I think the military budget this year even under Obama is over 700 billion.

We have more than 700 bases worldwide, a few 100 in Europe left over from the cold war, over 70 in Germany alone. I think Europe can protect itself. Why we maintain such a large cold war military status is nothing but waste. I'd shut down 100 of them and move them to our border.

What's ruined america is a corporate elite estate. Just 1% of people now hold over 40% of all US wealth, 20% hold 80%, compared to the 60's-80's when 60% of us held 80% of all wealth. Sadly, the GOP led us there under the disguise of free markets, improper regulation and called it capitalism. Corporations no longer work for america in a global economy, they pander to an elite class.

Both the Dems and GOP have spent like mad, trillions, nothing gained and broke....the big question is who's pockets got lined with all that money...a chosen few...it didn't just vanish.

[yubba]

Where we are at right now is the result of increase-ing energy prices, our economy is based on low energy prices, or 30 dollar a barrel of oil, if we don't get a handle on this issue, everything else is a distraction to this luming disaster. WE had close to 40 year to address this issue, so why does NASA want to go to the moon to find water to make fuel when we got plenty here ? And one more thing, the size of government and spending should be rolled back to pre 9/11 spending and size.

[gimpy117]

Our defense spending has the be reigned in. Its totally unwarranted in my opinion. We still spend like the cold war is on.

[tater]

The US debt crisis going forward is entitlements. The rest is noise. The promises made for medicare and SS are impossible (what a surprise that a ponzi-scheme is untenable over a long time frame).

Look at Obama's budget. Cut foreign and military spending to ZERO and it would still be nearly 1 TRILLION in the hole for the year.

To borrow from a previous election cycle, with a twist, "it's the entitlements, stupid."

Defense can certainly be reduced, but the difference between peacetime and wartime (current) spending is in fact not all that great.

[AVGWarhawk]

Last years census in the US showed 310,824,422 people. Everyone submit $30 additional on the taxes each individual is already paying. That will put a sizable dent in it. Rinse and repeat every 6 months. Real in the spending in DC. Close all the Walmarts. Walmart is a gorilla that shuts down any mom and pop operations with in a 20 mile radius of their parking lot. No more China items loaded with lead. Most of the items are junk out of the package and end up in our landfills in droves. Manufacture goods here on US soil. The service industry needs to come back to US soil. No more talking to 'Peggy' at Ice Station Zebra when experiencing a computer issue. In short...close the borders.

[gimpy117]

I can agree with AVGwarhawk here. Anyone who says offshoring was a good idea obviously hasn't lived in MI, or seen flint, or Detroit. It's one of the reasons the middle class was destroyed, and the rich got richer.

[Aramike]

Originally Posted by gimpy117

Our defense spending has the be reigned in. Its totally unwarranted in my opinion. We still spend like the cold war is on.

Defense spending IS high, and should be examined and reduced if possible ... but only AFTER we look at entitlements first.

What a lot of people do not understand is that defense spending is productive spending. It creates jobs, industry, research, etc. Any reduction puts people out of work but in the private industry and in government service.

It's chic to attack defense like we'll just save extraordinary amounts of money, but one must not forget the revenue we'll lose as well.

Our problem is non-productive spending (ie entitlements).

[AVGWarhawk]

Originally Posted by Aramike

Defense spending IS high, and should be examined and reduced if possible ... but only AFTER we look at entitlements first.

What a lot of people do not understand is that defense spending is productive spending. It creates jobs, industry, research, etc. Any reduction puts people out of work but in the private industry and in government service.

It's chic to attack defense like we'll just save extraordinary amounts of money, but one must not forget the revenue we'll lose as well.

Our problem is non-productive spending (ie entitlements).

Yes, defense industry is just that...an industry. Please clarify entitlements. Specifically what government program falls under entitlements?

[Aramike]

Originally Posted by gimpy117

I can agree with AVGwarhawk here. Anyone who says offshoring was a good idea obviously hasn't lived in MI, or seen flint, or Detroit. It's one of the reasons the middle class was destroyed, and the rich got richer.

That's what happens when you regulate companies out of the country while attempting to keep normalized trade relations with the rest of the world.

Everytime we raise the minimum wage we give more of a competitive advantage to other nations. On the other hand, we don't want sweatshops. And yet, people are used to cheap Chinese goods and don't want to pay more either.

I would suggest tax breaks for corporations who can efficiently produce goods domestically, but man, tax breaks for those evil corporations?

Liberal economic policies have painted us into a corner. That's not to say that Republicans have been much better. What we need is a CONSERVATIVE economic approach. Conserve industry. Conserve jobs.

While I think that AVG goes too far in any proposal to shut down a private American company, I don't see a problem with hefty tariffs for imported goods and tax breaks for companies that purchase domestic goods for sale. In fact, that would help equalize prices.

Fixing our economic woes involves taking a very xenophobic, America-first approach.

[August]

Originally Posted by gimpy117

I can agree with AVGwarhawk here. Anyone who says offshoring was a good idea obviously hasn't lived in MI, or seen flint, or Detroit. It's one of the reasons the middle class was destroyed, and the rich got richer.

Assembly line work is not and should never have been considered a middle class job! You want to know why Detroit failed? It's because they produced a shoddy and overpriced product. Forcing people to buy junk is not going to change that.