CNN: Ron Paul is the JOLT America needs

[helmuth_hubener]

I beleive she misspoke by opening her mouth, ever.

 

[frank1]

I beleive she misspoke by opening her mouth, ever.

lol

 

[randomname]

this one ought to be in media spin

 

[JuicyG]

This one will have unintended consequences aka blowback.

 

[frank1]

This one will have unintended consequences aka blowback.

I dont think so

 

[idiom]

The RP Plan would actually knock 4-12% off GDP immediately. This is a good thing in the medium term but it will hurt a hella lot for the first 12 months.

We are in a severe recession but 10-15% or more of the current GDP is a lie.

GDP = private consumption + gross investment + government spending + (exports − imports)

1/3 of the government spending part is being borrowed from the future. If it is cut it won't instantly return to the economy. It is money we don't have.

The upside to the RP plan is that a huge chunk of that spending is happening off-shore so America won't feel all of the pain of that.

After the first year however America would have an incredibly sound currency and investment dollars would flow in from all over the globe.

If we don't spend next years money today, then we will have it next year and next year will be a boom.

 

[jtap]

According to this video I have now learned that the government IS the economy. Thanks for the education. That should bring me up to around the national average in intelligence.

 

[Liberty74]

Not to be a dick, but slamming the brakes on the spending would technically put us into a (very) temporary recession. It would quickly recover, but gotta get worse before it gets better.

You might be correct if economies were zero sum as the Democrats and the Left proclaim, but economies are static in nature. You are also assuming hundreds of other variables are constant as well. Under Ron Paul, that simply would not be the case - he reduces corporate taxes to 15%, allow companies to return $1 trillion sitting overseas tax free (repatriate), the effect a balanced budget will have to the financial market and world, etc.

I work in the auto industry and the same argument was made for the bailouts of GM and Chrysler. If we don't bail them out (continue to spend money), the auto industry would collapse. Really? So the millions of cars that GM and Chrysler sold each year, those customers would disappear or die? Of course not. So what would happen? Those customers would have to buy from say Ford, Honda, Acura, Nissan, Kia, etc. In return, these dealerships would grow exponentially needing to build dealerships, hire workers, build more cars to meet demand, etc. GM and Chrysler workers would simply work for better and more efficient companies for the most part that know how to make money and stay in business.

Again, there is no such thing as a zero sum economy. Meaning if the government stops spending $1T from a $15T economy, the economy is only $14T. Not true.

 

[notsure]

CNN is sorta trying to fairly report on a "wake up and smell the coffee" epiphany over our bloody awful looming national debt ...for once?

After the board's been set?
Don't scare me like that.

I miss the Judge . The judge would have been awesome around these times.

 

[msmlies]

I miss the Judge . The judge would have been awesome around these times.

Agreed, the timing of his removal is suspect, for that matter the removal itself is suspect. The Judge was the only reason I watched the mainstream media to begin with. would be interesting to see how many viewers they lost after his removal. Of course that we will never know.

 

[idiom]

Again, there is no such thing as a zero sum economy. Meaning if the government stops spending $1T from a $15T economy, the economy is only $14T. Not true.

This is actually the point. The economy is $14T of which the government is $2T. On top of that the government is currently borrowing and spending $1T more from the future. The capacity to borrow that $1T is not naturally in the economy. It is missing from the GDP equation and makes the lie work.