Originally Posted by DonDadda59
Man you went off on a tangent that had absolutely nothing to do with my post
But I'd like to just address the bold- nowhere did I attack free market capitalism, just specifically the deregulation and Reagonomics 'trickle down' theory. I don't know of any historical or present economy that was purely laissez-faire and I don't think anyone in their right mind would even want to see that, it'd be like a Dickens' novel on crack. What I was arguing is that the two aforementioned institutions, which many on the right are calling for a redux of, has been proven to be a failure. I don't know how you can look at the events of '08, and economic barometers of the past 10 years or so and conclude otherwise.
We were all there. We saw it play out in real time. Yet people want to double down on another recession and/or possible depression?
Well first of all, going off on tangents is my superpower. I thought I've made that clear but I'll keep driving that point home until you people get it. Superman, Spiderman, Joe from Ish.. we are just higher beings who have been given amazing gifts. I try to use it for good as much as possible.
When you said "Republican theories of economics" were put to the test, my assumption is that you were referring to free market capitalism. So my mistake if you were referring strictly to tax cuts for the rich and deregulation.
Even in just those two cases, I would argue against your points. First, it's true that we had tax cuts for the rich, and then a few years later we had a housing bubble burst and a recession. But this is just a correlation argument. The Nintendo Gamecube came out around the same time as the Bush tax cuts, how do we know the Gamecube isn't to blame for the recession? Obviously I'm being facetious, but it just goes to my point that you can't infer causation from correlation. There were a lot of things going on in the economy besides the Bush tax cuts, so what exactly makes them so special that they caused all these problems? I for one believe tax cuts for the rich (and everyone) is good for the economy, so I don't buy that argument at all. How can letting people keep more of their own money be bad for the economy? Why is it better if the government spends the money rather than the people who earned it? I think the problem wasn't the tax cuts, it was that the government never slashed spending in line with the tax cuts. Instead it just used the central bank to print money for them to spend- which acts as a hidden tax on the people anyway, due to rising prices. And then we're stuck with a huge deficit too.
As far as the deregulation argument, even the people I listen to think deregulation had something to do with the housing bubble. But the problem wasn't too much deregulation, it was too little. The government removed one regulation whose entire purpose was to combat a SEPARATE regulation, but they still kept that other regulation on the books. In other words, the government removed the safeguard for a problem they themselves caused- the famous "glass steagel."
But even so, this is such an insignificant factor of the housing bubble/recession that it's hardly worth talking about. What do you think had a greater effect, removing a few select regulations? Or having a central bank pumping money into the banking system for years and years, while at the same time you have the government removing all the risk of selling homes through guaranteed mortgage repayment? The fact that neither Republicans or Democrats bring any of that up is shocking to me. Both should be anti-fed ideologically, and the fact that they aren't shows you how corrupt the whole system is.
Anyway, if you got this far down my post I might as well sneak this in. You should really google "Peter Schiff Housing Bubble" and just click on some of the links. If you're interested in the subject it can't hurt to hear an opposing viewpoint to yours, especially from a guy who had been predicting that real estate was in a bubble for YEARS, while everyone else was calling him an idiot for not jumping into the frenzy. If you want to recommend me something to check out for your point of view definitely do that too.