Socialism Experiment Topic

seamar_116
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Posted by swamphawk22 on 3/10/2013 9:43:00 PM (view original):
The government takes money out of the economy and puts it back with targeted programs.

The problem is that government bureaucracy wastes a large percentage off the top, so you never get as much as you took out of the economy.

Debt is important because of the intrest we pay and the lack of confidence it causes in our economy.
so I assume you have done your part and paid cash for your house and car?
3/11/2013 8:35 AM
seamar_116
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Don't banks need to have people and businesses take on debt in order to make money? What would happen to the housing industry if everyone had to wait until they had enough cash to buy a house (not necessarily a bad idea, but the adjustment period would be a *****!) One could easily argue that borrowing money is a sign of confidence in the the future by both the borrower and the lender.
3/11/2013 8:39 AM
MikeT23
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What happens when your debt is so great that you can't pay it?
3/11/2013 9:27 AM
bad_luck
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Posted by swamphawk22 on 3/10/2013 9:43:00 PM (view original):
The government takes money out of the economy and puts it back with targeted programs.

The problem is that government bureaucracy wastes a large percentage off the top, so you never get as much as you took out of the economy.

Debt is important because of the intrest we pay and the lack of confidence it causes in our economy.
How is it taken out of the economy?

Where do you think the money "off the top" goes?
3/11/2013 9:53 AM
tecwrg
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Posted by MikeT23 on 3/11/2013 9:27:00 AM (view original):
What happens when your debt is so great that you can't pay it?

I can't think of a single example where that's a good thing.

But, whatever.  "It's just debt".

3/11/2013 10:15 AM
bad_luck
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Posted by tecwrg on 3/11/2013 10:15:00 AM (view original):
Posted by MikeT23 on 3/11/2013 9:27:00 AM (view original):
What happens when your debt is so great that you can't pay it?

I can't think of a single example where that's a good thing.

But, whatever.  "It's just debt".

We aren't anywhere near that point. Just having debt isn't a bad thing. We pay 1/70th of the principal in interest each year.
3/11/2013 10:21 AM
tecwrg
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I had a neighbor who couldn't control his spending.  He owned two businesses (two gas stations), had a nice house on a nice piece of property behind my house.  He and his family "lived the life" for a number of years.

Care to guess what happened to his businesses once his debt finally caught up to him?  And his house?  And his family?
3/11/2013 10:30 AM
bad_luck
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Posted by tecwrg on 3/11/2013 10:31:00 AM (view original):
I had a neighbor who couldn't control his spending.  He owned two businesses (two gas stations), had a nice house on a nice piece of property behind my house.  He and his family "lived the life" for a number of years.

Care to guess what happened to his businesses once his debt finally caught up to him?  And his house?  And his family?
I'm guessing your neighbor didn't have 100% control over the currency he was borrowing in?
3/11/2013 11:07 AM
toddcommish
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Ah, the "let's just print more money" school of economics.
3/11/2013 11:29 AM
bad_luck
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Posted by toddcommish on 3/11/2013 11:29:00 AM (view original):
Ah, the "let's just print more money" school of economics.
Not necessarily. But controlling the currency makes default next to impossible.
3/11/2013 11:33 AM
MikeT23
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Could have sworn you disagreed when I said that the debt isn't "real" money.
3/11/2013 12:17 PM
bad_luck
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Posted by MikeT23 on 3/11/2013 12:17:00 PM (view original):
Could have sworn you disagreed when I said that the debt isn't "real" money.
Ok.
3/11/2013 12:19 PM
bad_luck
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And?
3/11/2013 12:22 PM
MikeT23
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No "and".   Just seems that printing more money means the debt isn't real. 

As an example, I use my credit card and charge $100.    I then use my money printing machine and make a $100 bill.   My credit card debt isn't real because I'll just keep printing money.

I guess you don't see it that way.
3/11/2013 1:25 PM
bad_luck
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Posted by MikeT23 on 3/11/2013 1:25:00 PM (view original):
No "and".   Just seems that printing more money means the debt isn't real. 

As an example, I use my credit card and charge $100.    I then use my money printing machine and make a $100 bill.   My credit card debt isn't real because I'll just keep printing money.

I guess you don't see it that way.
QE isn't debt (and it isn't legal for the treasury to just print money to pay the debt).
3/11/2013 1:26 PM
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