You can't spend your way out of a depression.
A counter cyclical policy only works if you start it in the good times (e.g. China can do it, as it built up a war-chest, as can Chile which did similarly)A counter cyclical policy would probably help in the long-term but how would we pay for it?
It took 10 years to get us this far into this mess. It will take years to get us out.
Everything that happened in this economy after 2003 was a lie.
We need to make/grow/develop stuff that people in other countries want and sell it to them. That's the only way to have a sustainable economy.
Now that property prices are starting to get to a realistic level we should do everything we can to keep them low. That way we have some chance of standing still and waiting for inflation in other countries to make us competitive again.
You can't spend your way out of a depression.
100% correct. If it was possible to spend your way out of a recession/depression then there would be no problem. Nothing is simpler than spending money whether it be saved or borrowed.You can't spend your way out of a depression.
Would that be the FDR who's entire policies resulted in a depression (multiple recessions) lasting 17 years? The US did not recover until government spending was cut long after WWII ended. Hoover's and FDR's spending policies, as "cures" for the depression, are a perfect example of the damage that spending does.FDR would tend to disagree.
This is nonsense and you are also contradicting yourself. First to the contradiction. You say that government and people need to spend more, but also claim that government should tax less and more private investment is needed in some "niche markets". Governments can only spend what they ultimately take out of the economy through taxation, and private investment can only increase if people and organisations spend less.Restrictive practices make recessions worse.
The size of an economy depends on both the size of transactions and the numbers of transactions.
The more transactions and the more broadly based the players are in terms of sectors and product variation, in general, the healthier the economy, because it is more flexible and more able to take a hit.
Therefore looking at all available niche markets and seeking alternative outlets for all our products is what we should be doing in Ireland, while at the same time spending our discretionary income at home to help support and stimulate local businesses and job creation at home in Ireland.
This isn't a recession, also counter cyclical policies must begin in good times - not in bad.What dahamsta said.
Restrictive practices make recessions worse.
The size of an economy depends on both the size of transactions and the numbers of transactions.
The more transactions and the more broadly based the players are in terms of sectors and product variation, in general, the healthier the economy, because it is more flexible and more able to take a hit.
It's true that cutting spending (any type) causes the recession to get worse.
After all, a recession is a fall in income/output, usually caused by a fall in demand / spending.
But unfortunately due to the size of the fiscal deficit, the Govt must cut Govt spending.
You would hope that other types of spending take up the slack.
FDR would tend to disagree.
Yes, that is what I was trying to point out. It is so often stated that a country in trouble would be better off if there was simply more spending, be it government or private. However, the exact opposite is true. Just like a family spending all its income, plus some more on credit, and not saving anything doesn't increase its wealth, a country that spends more becomes less wealthy.Chris, you seem to be suggesting a GDP with a lower proportion of C spending and a higher proportion of I spending and exports.
If so, I agree.
The UK and USA have higher proportions of C spending,and they have negative contribution from exports.
Actually WWII also had nothing to do with bringing the depression to an end.Adolf had far more to do with than FDR.
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