Bill Maher ~ New Rules Closing (July 8th 2011)

Bill Maher once again explains why tax cuts and protecting big corporate interests won't create jobs and won't suppurt the average citizen. -YT
Yogisays...

Also I think Bill Maher doesn't really understand innocent until proven guilty. Everyone can thank the cops that get several phone calls from a guy claiming to have found a babies skull and they didn't bother investigating it. Just like the OJ verdict blame the cops for being stupid.

MaxWildersays...

I simply don't understand the mentality of supply-side economic theory. Business aren't stupid. They won't ramp up production or invest in a new sector unless they have a strong expectation that people will purchase their product. If everybody is either unemployed or under constant threat of imminent unemployment, they're not going out to buy things! So businesses won't hire new people to make new things! How is this not obvious?

The bailout was, in large part, given to the rich. And the rich are keeping it until they see an improvement in the economy! If, on the other hand, we had put all that money toward infrastructure and work programs, then there would be tons of poor and middle class people spending their wages on the weekends! Boom! Recovery. After a year or two of that, the government could scale down the spending and start recouping the loss.

Am I wrong? (Aside from the fact that politicians would never want to scale down after the recovery. We'd have to force that with political pressure.)

kymbossays...

MaxWilder,

You're mostly right. I don't know about the American bailout, but Australia (which rode out the crisis almost without a glitch) threw money at everyone in the first round of stimulus, and then tried 'shovel ready' infrastructure and other projects in the second round. The Government got a lot of heat for 'wasting' the money, but it was apparently the second round of spending that really held up the economy. The spending was on school infrastructure and roof insulation and myriad other ways to get the cash out in ways that kept people spending and kept the construction industry going.

Of course, that was on a different scale to the American problems, but the principles are the same.

Asmosays...

>> ^MaxWilder:

I simply don't understand the mentality of supply-side economic theory. Business aren't stupid. They won't ramp up production or invest in a new sector unless they have a strong expectation that people will purchase their product. If everybody is either unemployed or under constant threat of imminent unemployment, they're not going out to buy things! So businesses won't hire new people to make new things! How is this not obvious?
The bailout was, in large part, given to the rich. And the rich are keeping it until they see an improvement in the economy! If, on the other hand, we had put all that money toward infrastructure and work programs, then there would be tons of poor and middle class people spending their wages on the weekends! Boom! Recovery. After a year or two of that, the government could scale down the spending and start recouping the loss.
Am I wrong? (Aside from the fact that politicians would never want to scale down after the recovery. We'd have to force that with political pressure.)


Pretty much bang on the money. You have to have different sources of pressure (ie. investment) to keep the money flowing around the economy. As the panic sets in, risk goes up and people become more conservative in their investments, which exacerbates the problems. The only organisation big enough to shoulder the risk of massive investment during a downturn is typically the government, particularly since they aren't a 'for profit' organisation (although keeping the system running will eventually result in a quicker return to prosperity = more taxes etc).

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