Hello,
I have been thinking about what I am going to say at the next delegate selection process, and I came up with something along these lines. This is more than you would want to say, but it should give you enough to argue your point if further debate ensues.
=============
1. Convince people our economy needs help
http://www.youtube.com/watch?v=OS2fI2p9iVs
The head of the Government Accountability Office says we need to spend less.
"I don't know anybody who has done their history...that thinks we can grow our way out of this."
2. How other candidates plan to help the economy
McCain: Ambiguously says will eliminate wasteful spending. Lacks details
Huckabee: Ambiguously says will eliminate wasteful spending. Lacks details
Dr. Ron Paul: Will cut OSHA, withdraw from overseas affairs, cut the Department of Education, cut the IRS, cut down the size of the CIA and the FBI.
4. Banking 'boosting' the economy?
This argument is wrong. When the government injects money into the economy it expects to increase economy size through the multiplier effect.
Money multiplier effect=(change in GDP)/(amount of investment)
One quoted number for this value is 0.6
Eckstein, Otto 1983 The DRI Model of the US Economy, New York:McGraw-Hill, DOI-10.2307/1058399. ISBN-0070189722
That means we gain 3/5 of the initial investment made by the government.
5. Why people think it works
The government borrows money from the Federal Reserve or China predominantly, and at interest. The Federal Reserve currently charges ~3% interest
http://www.federalreserve.gov/releases/h15/update/
This means in the government injects $1000 into the economy, they will create $600. Though they will only owe $300 from the loan. So a net gain of $300 was made right?
6. Problem
The money multiplier effect does not actually create money, it increases productivity of the public by giving them a false sense of economic stability. When it comes time to pay the bills, the federal reserve does not want sheep wool, it wants money. That means if the government tries to pay off its $1300 debt, no matter how much it taxes us, we still only have $1000 actual money.
I have been thinking about what I am going to say at the next delegate selection process, and I came up with something along these lines. This is more than you would want to say, but it should give you enough to argue your point if further debate ensues.
=============
1. Convince people our economy needs help
http://www.youtube.com/watch?v=OS2fI2p9iVs
The head of the Government Accountability Office says we need to spend less.
"I don't know anybody who has done their history...that thinks we can grow our way out of this."
2. How other candidates plan to help the economy
McCain: Ambiguously says will eliminate wasteful spending. Lacks details
Huckabee: Ambiguously says will eliminate wasteful spending. Lacks details
Dr. Ron Paul: Will cut OSHA, withdraw from overseas affairs, cut the Department of Education, cut the IRS, cut down the size of the CIA and the FBI.
4. Banking 'boosting' the economy?
This argument is wrong. When the government injects money into the economy it expects to increase economy size through the multiplier effect.
Money multiplier effect=(change in GDP)/(amount of investment)
One quoted number for this value is 0.6
Eckstein, Otto 1983 The DRI Model of the US Economy, New York:McGraw-Hill, DOI-10.2307/1058399. ISBN-0070189722
That means we gain 3/5 of the initial investment made by the government.
5. Why people think it works
The government borrows money from the Federal Reserve or China predominantly, and at interest. The Federal Reserve currently charges ~3% interest
http://www.federalreserve.gov/releases/h15/update/
This means in the government injects $1000 into the economy, they will create $600. Though they will only owe $300 from the loan. So a net gain of $300 was made right?
6. Problem
The money multiplier effect does not actually create money, it increases productivity of the public by giving them a false sense of economic stability. When it comes time to pay the bills, the federal reserve does not want sheep wool, it wants money. That means if the government tries to pay off its $1300 debt, no matter how much it taxes us, we still only have $1000 actual money.
