Monday, May 7, 2012

Dumbass Idea of the Week: Socialism when in Debt?

In a stroke of genius, the French people elected a socialist as their president.  Of course, I'm being sarcastic about the genius part.

The reason why I think it's stupid is because France is suffering massive debt, much along the lines of the whole Greek debt crisis.  So they think the best way to solve the debt problem is to elect a guy that is going to incur even more debt.

It's the law of nature isn't it?  It's just like how the best way to neutralize acid is to add more acid: incurring more debt is the best way to get out of debt!  It's amazing how wizardry and gorilla dust can solve all of our problems!!!


Silverfiddle said...

I wouldn't be too hard on them. We're all socialists now...

Joe Markowitz said...

It's Economics 101, Jack. When your economy is shrinking, you need to get people working again, or else you will have a depression on your hands. We did not get out of the Great Depression until we were willing to incur massive debt to fight World War II. And right now our economy is doing better than Europe because we have been willing to increase our debt to stave off depression, while Europe is so focused on reducing its debt that it is sliding into another recession. The French were right to say, enough of that!

Jersey McJones said...

Jack, think.

When you have an economy that is failing for most people, but the wealthy are doing just fine, wouldn't that be a good time to raise taxes on the wealthy to build roads and schools and hospitals and wires and pipes to GROW the economy out of that morass?????


Jack Camwell said...

If spending money is the answer, then why are they in a debt crisis? Why has their economy tanked with everyone else's?

The tax rates in France run about 50%. They all get free college, free health care, and a slew of other things free.

So with all that "free" stuff, why did they still end up having hard economic times like the U.S.?

And these are not new things in Europe. In France, health care and college have been free to the users for a pretty long time, yet despite these things they still felt the recession. So doesn't it stand to reason that the answer to economic recessions has little to do with how much money the government sends?

And WWII is a bad example. We had an ass ton of stuff produced that was all being consumed. Bullets, guns, ships, bombs. Much of those things were either destroyed or used up.

But once the war was over, we were faced with the same problems because the people working in the war factories found themselves out of a job again.

manapp99 said...

People bringing up WWII or the great depression to compare our current situation are like Generals fighting the last war instead of the current one. The global market, free trade agreements, aging populations and generations of people addicted to government assistance makes our economic situation unique. The French and Greeks that voted against austerity are simply ignoring the depth of the problems their countries face economically and are voting for their own short term gain to the peril of those coming after them. Countries that continue increasing debt will, at some point, find money either too expensive as borrowing rates increase or simply not available. The kind of forced austerity that will follow will be far worse than voluntary reductions now. Lucky us...we get to watch our future (if we continue our spending course) play out in Europe before we get to live it.

Joe Markowitz said...

Jack, after World War II, when our country went into massive debt to finance war spending, we experienced one of the greatest economic boom times we have ever known. And that was because we had built up the infrastructure of factories and steel mills and such that were necessary for the war effort, and that were then converted to building cars and refrigerators and washing machines and all kinds of other stuff. And because we trained people who had lost their employment on farms to work in factories instead. One of the reasons that both America and Europe have gone through economic tough times in the last few years is that we are making a similar transition to whatever the next economy is going to be. And that is why we need to make a similar investment in clean energy technology and transportation and high tech manufacturing and stuff like that. If we react by firing public employees and canceling building projects and similar kinds of austerity measures, we are just going to make our problems worse.

Silverfiddle said...

Joe: An additional factor which liberals conveniently overlook, is that we were the only industrial power left standing.

The whole world was our oyster. We could set the price and others had to pay it. There was nowhere else to invest, so rich people were trapped and we could tax them at exorbitant rates.

Post WWII was an historical anomaly, economically speaking.

We got fat, dumb and lazy, and the rest of the world started eating our lunch in the 70's once they caught up.