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Duh..... |
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Balladeer
Administrator
Member Empyrean
since 1999-06-05
Posts 25505Ft. Lauderdale, Fl USA 
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BEIJING – President Barack Obama says he's worried that spending too much money to help revive the economy could undermine a fragile U.S. recovery and throw the economy into a double-dip recession. That's when the economy begins to recover briefly from a recession only to be dragged back under. Obama told Fox News in an interview Wednesday that his administration is weighing tax breaks that could encourage businesses to begin hiring again. But he added that it's important to recognize that if the nation keeps adding to deficit spending through tax cuts or more stimulus spending, at some point people could lose confidence in the U.S. economy and that could "lead to a double-dip recession." http://news.yahoo.com/s/ap/20091118/ap_on_re_as/as_obama_economy Oh, really??? What an amazing revelation!!! (so why doesn't he stop?) |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
Did he actually say that Mike? If so he's an idiot. I can understand the tax breaks to encourage businesses that have the available capacity and need but are deliberating whether to take on the extra cost of increasing their workforce. That was always a possible option. What I don't understand is this: "it's important to recognize that if the nation keeps adding to deficit spending through tax cuts or more stimulus spending, at some point people could lose confidence in the U.S. economy and that could "lead to a double-dip recession." That's twaddle. Eating into the recovering profitability of businesses by increasing tax and withdrawing liquidity (stimulus) from the market at the same time is how you guarantee a double-dip recession. The above statement by Obama doesn't make sense. Unless the reporter didn't understand what he was hearing. I'll wait for the transcript. . |
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Balladeer
Administrator
Member Empyrean
since 1999-06-05
Posts 25505Ft. Lauderdale, Fl USA |
I had a hard time believing my eyes, too. Click on the video at top left of the link to get part of the transcript. |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
I watched the clip Mike, there's not enough to get the context. I did find a portion of the transcript released by Fox. “[O]ne of the trickiest things we’re doing right now, is to on the one hand make sure the recovery is supported and not withdraw a lot of money either with tax increases or big spending ... at the same time, making sure that we’re setting up a pathway long term for deficit reduction. It’s about as hard of a play as there is.” There's still not enough to understand exactly what he was talking about, though the tax increases are at least correct in this version - hopefully a full transcript will be released at some point. . |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
“It’s about as hard of a play as there is,” Mr Obama said, adding that his team was trying to set up a “pathway long term for deficit reduction” without pulling a lot of money out of the economy in the short term via tax rises or spending cuts. http://www.ft.com/cms/s/0/ee761ae2-d443-11de-990c-00144feabdc0.html?catid=6&SID=google If the above turns out to be what he actually said it makes a lot more sense. |
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Balladeer
Administrator
Member Empyrean
since 1999-06-05
Posts 25505Ft. Lauderdale, Fl USA |
at some point people could lose confidence in the U.S. economy Earth to Obama..."read the polls". |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
Presumably you mean the Chinese polls Mike, if they lose confidence in your economy you're stuffed.  |
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Balladeer
Administrator
Member Empyrean
since 1999-06-05
Posts 25505Ft. Lauderdale, Fl USA |
No, I meant the US economy, the one that people have already lost confidence in....but don't tell Obama! |
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Huan Yi Member Ascendant
since 2004-10-12
Posts 6688Waukegan |
. "There's still not enough to understand exactly what he was talking about, " Is that where we shoud be? . |
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Bob K Member Elite
since 2007-11-03
Posts 4208 |
I believe that was in reference to the reportage, John. The economics of the situation, through the lens that President Obama is viewing them, are pretty much as Grinch states, and we understand those to be as Grinch states them. It's Keynesian economics, generally. The reportage confusion was due, if I understand correctly, to Fox news printing an inaccurate version of the text. I know that only from the excerpts printed in the thread so far, so I await correction if there is correction to be made. I also understand that a large part of the stimulus money is now in position and will be coming on line over the next year or so, so that there should be an injection of cash into the economy over that period that the economy should feel. It seems to me that this would make good political sense as well as good economic sense. Thoughts? |
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Grinch Member Elite
since 2005-12-31
Posts 2929Whoville |
No Huan. Unfortunately though it's where we are. A prominent person gets interviewed and the interviewers release a few choice quotes out of context and sequence that happen to support their particular view or make it sound like they've got a scoop. Either that or they report what they think they heard or would have liked to hear. Fortunately after the show is aired you generally get a full transcript, though not always, sometimes the interview itself is cut following the above rules and all you end up with is a transcript of the edited version of what someone said. Bob, As far as the stimulus goes the sensible thing would be not to spend it unless you had to. The real intent to spend the stmulus is questionable. The important thing was always to make people believe the Government was going to spend it, in the hope that it would inject confidence into the market. If they can get away without having to cough up the dough they will, if that happens though there'll be a bunch of folks falsely claiming that the stimulus was unnecessary. If you think of the stimulus as analogous with a nuclear deterrent you won't be far wrong - they want to be really convincing that they're going to use it but they would really prefer not to. Don't be suprised if they don't.  |
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