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Re: Image comments for US economics explained
Posted by: Mrkim
Date: 04/01/2013 03:34PM
Economists have stated over and over the same thing any rational minded person can deduct pretty simply .... you can not spend your way out of a recession or debt (*facepalm*)

It's quite true the US govt is not a household, but the analogy is still just as relevant. One major difference of course is the govt does not make money, it only consumes and spends that which it has already taken from others. A second is that a household doesn't have the ability to raise its "income" by just taking more from others. And then of course a household can not devalue its debt by generating an influx of synthetic new dollars, which BTW are backed by NOTHING hot smiley

If an individual or family saddled with $120k plus of non-collateralized debt resting atop the previous years record of having incurred near 50% of new debt over their income approached a lender seeking another non-collateralized loan so they could continue to simply spend above their current income level they'd be laughed back out into the street.

Those incapable of seeing the all too obvious logic of the above are the ones I would have to call simpletons eye rolling smiley

smoking smiley

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