Jesus, where to begin.
> No. But it will help. Cut spending and you relieve pressure on the credit system, increase confidence that we aren't going to collapse like the PIIGS currently are and generally move in the right direction. If the cuts also relieve government meddling in the economy so much the better.
I don't think you'd appreciate the finer points of fiscal and monetary policy or how the PIGS economies are so much different from ours the comparison is at best laughable
so let's just call this bullshit and move on.
> Recessions tend to do that. When people and corporations have less income there is less taxes collected. Which is why economic growth is the only viable way out.
More half-baked truths here. Corporate profits at the end of 2010 were soaring. Third-quarter 2010 saw the steepest year-over-year corporate profit surge since they started recording data 60 years ago. GDP grew nearly 3%. Linkage: Profits Are Booming. Why Aren’t Jobs?
and GDP Data
> Revenue increased through the naughties although there dips during the downturns. Spending increased more than revenue.
Again, this is complete bunk. Please look at this chart
U.S. federal revenues for years 2000-2010. Under what situation would this be considered increasing revenues? Spending did increase quite significantly. You can mostly thank the Republican in congress for that, though. They blew a hole in the budget with Medicare Part D and the Bush tax cuts which were both entirely funded by debt
. Of course I didn't mention two failed Middle East wars that are also unpaid. Read it and weep.
> Second we gave loans to people with little probability of repaying, mostly because of government intervention in the home loan process via Freddie and Fannie.
Right effect, wrong cause. Lots and lots of folks got mortgages they couldn't really afford because the there was a huge incentive to make them. The giant investment banks that underwrote these sub-prime loans quickly bundled them up and sold them as investment vehicles. Once they investments were sold the originating banks had zero
skin in the game. Freddie and Fannie both are terribly flawed, but they weren't the cause of the problem. This is one solid case where we need more government, lots more. Dodd-Frank was an attempt at getting the shit hole that is Wall Street cleaned up, but the Republicans are hell bent on repealing/neutering that.
I know I am coming off like a huge asshole here, but I get very pissed off when I hear party ideologues espousing bullshit. I'm not hear to tell you that the Democrats are our saving grace or even a good choice, but for Christ's sake this Tea Parry/Republican pseudo-intellectual bullshit has got to stop.