Paul Ryan: No sugar high economics; need to restore foundations for growth

We've had an absolute gusher of domestic discretionary spending over the past two years. I would take all of that money back. It didn't work. It didn't bring unemployment below eight percent. We're still at 9.6 percent.

We need to restore the four basic cornerstones and foundations of economic growth: low tax rates; sound money; reasonable, predictable regulations; spending reform and controls. There's no substitute for those things. No sugar high economics, like a stimulus, is going to substitute for the fact that we're not getting the core foundations for economic growth right.


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[GOPkicksbutt]

Thanks to liberal policies America can no longer afford to pay for medicare, social security, unemployment and many other services. We also need to lower the minimum wage to $2/hr in order to compete with China and bring jobs back home. Fiscally responsible conservatives like Paul Ryan and John Boehner know this and are currently

working to end these wasteful handout programs and bring the minimum wage down so that America can be great again. God bless the GOP!

[twk373]

Open your eyes and stop believing that macro-economic trash you took in school. Before blindly parroting a textbook, ask yourself if what the textbook is telling you makes sense.

The great thing about economics is that unlike real technical fields (such as mine, materials engineering) you do not need to know advanced math. Why? Because economics, unlike engineering, is based on HUMAN ACTION, not physics.

And any human can understand human action. Not rocket science.

[twk373]

@twk373

But when interest rates are disconnected from savings, the Phillips curve no longer holds, because the apparent growth is unsustainable. The resources were not saved and thus are not available for investment, they are busy being consumed.

[twk373]

@twk373

Let me explain this to you in simple terms. You obviously do not have a fucking clue why there is a business cycle. You have no idea why there is a boom, or why there is a bust. Accordingly, simplistic empirical analyses are less than useless. Take the Phillips curve as an example. In a free economy, where interest rates are not subject to manipulation, low interest rates would correspond to high growth, because those interest rates are determined by savings.

[twk373]

@twk373

The Phillips curve tells us nothing but what we already knew, jackshit. Yes, new investment (and thus employment) increases during the boom. But it is based on the misperception that there are resources available for expansion. No such resources are available, because the low interest rates are based on fantasy money and not savings.

[twk373]

@twk373

The only way for real output to increase is for investment to be based on savings, which means the interest rate has to reflect savings. Manipulating interest rates without increasing savings is precisely what creates recessions, because new investment will inevitably lose the bidding war with consumption, and then the apparent increase in fantasy output vanishes. You can be forgiven for not knowing any of this, though.

[twk373]

@twk373

Yes, the stimulus is responsible for new investment. But what you fucking brain-dead morons cannot seem to grasp is that real savings have NOT increased. So rather than the new investments using up saved resources, they have to compete over the same resources with current consumption. Thus, most of those new investments will fail, and the resources are wasted. So real output has not increased.

[twk373]

@twk373

Immediately after the stimulus…guess what, there is still x capital! Shock. So apparently creating fantasy did not magically create any new capital. So, what about in the aftermath of the stimulus? Well, the effect of the stimulus is to lower interest rates. Now, thanks to the Keynesian propaganda machine, investors are trained to think that lower interest rates (whatever the cause) means they should invest in new capital. Now, this is where your brain shuts down completely:

[twk373]

That inflation cannot increase real output is so fucking obvious that I'm surprised even you can't see it. Pay close attention, zombie: real output can ONLY go up if there are 1) new efficiencies or 2) new capital. Efficiency is obviously completely independent of inflation, because it created by human ingenuity. So the question is capital. Let's do a simple thought experiment (you do have thoughts, don't you?). Prior to the stimulus, say there is x capital.

[twk373]

Every time you write something, it becomes increasingly obvious that not only do you fail at economics, but you fail at basic math and basic logic. I actually thought you were trying to make an intelligent point re: underwater homes. Apparently not. If your home is below its '92 price and you didn't take on any debt, what the hell is the problem? After the correction, your home price will go back to where it should be. Big fucking whoop. Apparently you were not even trying to make a point.