[quote]Ryan P. McCarter wrote:
dhickey wrote:What does consensus have anything to do with causes of recession? Just because you don’t take the time to understand basic economics, doesn’t mean others don’t. The boom and bust cycle is economics 101.
Why don’t you go back and dust those books off, and you’ll discover that recessions are generally complicated and don’t generally reduce to a single cause. That’s all I was saying, because it seemed to me that the previous poster was trying to lay it all on the Democrats’ doorstep.
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Wrong. Every recession and the great depression have been analyzed in detail. The cause of the boom is always fairly easy to target. Bad policy to deal with the bust are also just as easy to point out. Economics is not terribly difficult to understand if you take even a small amount of time to try.
Economic policy, on the other hand, is overly complicated and only serves to slow down corrections needed in the market. Generally speaking.
we don’t need any more money. The money supply should be finite just like any other commodity. What we need is for gov’t to lower taxes and leave more of the finite supply in the hands of the market.
Congress has shown that the money collected in taxes has little correlation to the amount they are willing to spend. This is why we have a huge deficit, much of it accumulated during good economic times. It sure would be nice of them not to spend more than they have, but this has little impact on a recession unless it involves inflating the money supply or raising taxes.
So again, a recession can certainly have an effect on the deficit but not necessarily the other way around. Now, too increase spending while simultaneously collecting less in taxes is pretty dumb, but certainly not uncommon. They have done this in boom and bust.
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dhickey wrote:Probably? You mean the housing boom? The boom is problem, not the bust. The bust is the correction. You want to find the responsible party, find those that facilitated the boom. Actually a pretty short list of people.
I said “crisis.” Do you read these before you reply to them?[/quote]
There is no housing crisis. That was my point. If you understood the very basic concept of the business cycle you understand my point. We are in a correction period right now.
If you let the speculators take their losses, we will be back to normal in no time. You need to think about who the speculators are. Many of them make a great deal of money in boom, and many lose their shirts in the bust.
When gov’t encourages the boom and intervenes in the bust, we get what we are looking at now. An unnecessarily long and painful correction period. This has happened so many times, that it is not hard at all to predict.