Stimulus - a magical theory making things worse since...

[Redbacks]

Ofailma! Listening to Keynsian soft****s who looked after the 1% mega-rich on wall street, whilst believing they are caring for the middle class/poor, never looked so easy!

[benchmark00]

I want a good clean fight.

[Spikey]

[Flem274*]

Originally Posted by Spikey

I found this much more informative than the other pictures.

[Burgey]

How'd that Australian recession go?

Oh wait.....

[silentstriker]

Originally Posted by Redbacks

My made up graph is better than your made up graph:



I claim we avoided 100% unemployment!

[Spikey]

Yes as you can quite clearly see, Democracy simply doesn't work. We have had democratically elected governments during all four of those periods and the result is clear: an economic downturn.

[Spikey]

Yes as you can quite clearly see, the global economy is totally in sync with the quality of pop music. The mid 70's, early 80's, late 80's/early 90's and late 00's are all acknowledged as dark times in pop music. The quality of pop music in the late 00's in particular has been strongly criticised for it's poor quality.

[Spikey]

I really think I'm onto something there re pop music. I'm gonna write a book and become the next Ayn Rand.

[_Ed_]

Originally Posted by Redbacks

Ofailma!

Reasonably unimpressed with this effort, tbh.

Spikey's efforts much more convincing, for mine.

[Redbacks]

Originally Posted by silentstriker

My made up graph is better than your made up graph:



I claim we avoided 100% unemployment!

Lol, the first graph is from the economist magazine and based on what the 'scientific keynsian econometricians' said would happen and once again things were made worse.

As predicted by those who subscribe to capital theory the Stimulus made the recession worse and longer. Whilst the rich got bailed out by the middle class.

I was thinking the other day, whatever happened to Iceland? At the beginning of the global financial crisis Iceland’s three banks collapsed leveraged beyond the small nations GDP. Total debt reached 9.553 trillion Icelandic krónur (€50 billion) compared to Iceland’s GDP in 2007 of 1.293 trillion krónur (€8.5 billion). Iceland went cap in hand to the IMF, its currency collapsed to about half its previous value compared with the USD. The world for the most part wrote off Iceland and the IMF required a significant austerity package in condition for their support.

So what has been the experience of Iceland since 2008?
GDP Growth: 2008 1.4, 2009 -6.9, 2010 -3.5, 2011 2.2, 2012 2.9.
Unemployment: 2009 7.2%, 2010 7.5%, 2011 7.0%, 2012 6.2%, 2013 5.3%
Government Debt (% of GDP): 2008 102%, 2009 120%, 2010 120.2%
Government Fiscal Condition: 2008, -13.5, 2009 -10.0, 2010 -7.8 (Expected to return to surplus 2013)
(Source OECD, Iceland - Economic forecast summary (November 2011))

[Redbacks]

Originally Posted by _Ed_

Reasonably unimpressed with this effort, tbh.

Spikey's efforts much more convincing, for mine.

So you get angry when a physicist says for every reaction there will be an equal and opposite reaction?

I take no emotional baggage towards a scientific claim, prefer to look at the results. Those that constantly fail probably need to be turfed.

[Spikey]

There's no doubt poor pop music makes people feel down and this has a flow on effect as to how they invest their money


So obviously the entire world should have spent their stimulus on improving the arts, instead of spending it on the financial world.

[Redbacks]

Originally Posted by Burgey

How'd that Australian recession go?

Oh wait.....

during the great depression our government cut spending -> 2 years until recovery

the US increased spending -> prolonged recovery

Australia:

Productivity


Unemployment recovery:


As soon as productivity increased, there is a reduction of the wage rate relative to the value of the product and the demand for labour increased i.e. unemployment fell.

USA




Forget the media myths. Production is the way out of a recession. People bought twice as many fridges in 1935, with unemployment at 20% in the US, than in 1929 when unemplyoment was 3.2%. You can clearly see the opposite of what happened in Australia occured in the US. Wages were increased relative to their marginal value by central dictate and as the simple axiom of economics would say: As wages increase relative to the value of products the demand for labour decreases and the unemployment level increases as a result. No wonder public works were used, noboby else can take money by force and build things and a business can't operate as a loss making entity if labour is overpriced. All the intervention really did was stunt growth in the real economy and prolong the depression until WWII.

You can't shop your way out of a recession. Real wages have to adjust to meet labour productivity or you get a surplus of workers causing greater unemployment aka the results of the recent US stimulus.

[Burgey]

And when business retreats from production, you say the government shouldn't step in to build infrastructure/ promote employment itself?

How are those contractionary policies going in the UK right now? Never mind the 30s in the States, are you saying the stimulus measures here didn't work when the GFC hit?