Deficit economics is a bad thing, right? The more money printed, the greater the inflation...
I'm arguing a liberal and he doesn't seem to believe this. If I'm in error, someone tell me
haram topic
Deficit economics is unsustainable.
Ask your liberal friend why unsustainable environmental policy is bad but why unsustainable economic policy is fine.
Both of those are correct... This cuck probably believes that you can grow the economy "From the heart outwards"... Ontario spends 11 Billion a year just on interest!
Liberals tend to be nihilistic moral relativist, they take that degenerate homosexual view of Keynes "in the long run we're all dead" hence why they don't have families, don't practice longer time preference and why they're proud of their degenerate lifestyle.
Arguing with them is mostly pointless because they're not long term thinkers.
>>81422586
No, it's not a bad thing, it's how modern economies were built. It only sucks if you fuck up by not building infrastructure and create private sector jobs.
>>81422586
You are correct.
Also, tell him that fiat money is garbage too, the only currency worth having is redeemable in specie.
>>81422986
>>81422586
There are problems with more rapid inflation, if that's what you're implying. Rapid inflation is pretty much a tax on everyones bank holdings, not to mention that wages etc don't respond very quickly to inflation. A stable inflation is okay because it can be predicted and taken into account but rapid inflation is not
Money as debt is a doomed system. You will never be able to pay back all the money owed and if you did there would be no more money.
Fiat currencies have failed throughout history. Just point to any of the recent hyperinflation issues.
>>81422586
stop posting coalburneronhead
>>81422586
The pic you posted got me wonder if you follow that e-whore. Its unfortunate but I won't stop you.
>im arguing a liberal hurr pls help me think, i know nothing beyond printing =inflation
fuck off faggot
>>81423522
if I'm wrong economically prove it faggot. Hell, even your tag is queer
>>81422986
>flag
O the irony
>>81423243
>stable inflation is okay because it can be predicted and taken into account
Nonsense. Inflation serves no economic benefit for the economy at large, it only rewards the inflator at everyone else's expense. These effects do not disappear when you inflate under a certain percentage.
Plus, what you're referring to is what we have currently, and it is rarely accounted for. Few salaried positions (or even wage positions) take inflation into account. Neither do loans. Neither do government payment services like pensions. People suffer because of inflation right now.
>>81423243
>>81422586
You would be right if we weren't in a liquidity trap.
at the zero lower bound for interest rates conventional macro goes out the window.
Inflation has been tracking well below the feds 2% target rate for years now, there hasn't been a period in american history with lower inflation than we have now.
The deficit thing is related but also somewhat of a different issue.
The standard view is that deficits in bad parts of the business cycle = good, deficits in good parts of the business cycle = bad.
unfortunately governments cannot be trusted with this and just always want to run deficits
>>81422586
I miss boxxy
The issue is that to this point your liberal friend is actually dead on.. The fed has pumped trillions into our system over 13 years now and the inflationary effects have been minimal...
How is this?
Recently Krugman visited my uni, and as luck would have it during question time I ask him.
He was underwhelming in his response but basically went on to say that "we have nothing to worry about.."
The banks are bordering the money... And for good reason.. The store the cash to protect against insolvency.. They are the rats leaving the ship before the whole thing goes down..
Citizens don't have much of chance--
It'll be soup lines for most of us.
Sauce: econ B.A., M.A.
>>81423874
This.
Highly underrated poast.
>>81424028
Do you ever feel like wanting to punch Krugman?
I find he has a very punchable face.
>>81423814
People and organizations that borrow money benefit from inflation. However, if the borrower in question has an income deficit, the benefits are nullified.
>>81422586
Also the deficit and the money printed are to entirely different things.
Money being printed = monetary policy which is conducted by the federal reserve which is autonomous of the federal govt.
They "print money" by buying up tons of bonds from investors in the us, in exchange for cash. this pushes bond prices up and hence yields down, as rates fall.
The deficit is run by the federal government and financed by their own debt (federal govt bonds), which are sold to the people, often in the form of t-bills.
The US government debt is held by the american people (and to some degree china), not to the fed
>>81424028
Krugman is complicit. Inflation is nonexistent because GDP growth is nonexistent. All of Krugman's claims are based on the dollar holding eternal reserve status
>>81422874
Long term for Keynes means you shouldn't plan your economics 5 years in advance. That's what socialist states in the 50s did. The Point with "in the long term, we are all dead." is exactly what lefties miss out, because the consequence of their spending behaviour is either a hyperinflation or a socialist planned economy like they had east of the Berlin Wall.
>>81423874
>liquidity trap
Not a real thing.
>>81424028
getting to ask a noble laureate a question is pretty damn cool. I wouldve never had the balls to do that. good for you man.
It does blow my mind how they can print endless amounts of money and it has no real effect on the economy. Same with the federal government taking on more and more debt with no credible way to pay it down
I really hope these guys arent missing something in their models or we are fucked lol
[spoiler]test
To be honest, the boomers fucked us over with unfunded liabilities and deficit spending.
Millennials might as well do the same to GenX. We will be dead by the time this system crashes anyway see we might as well just run up the deficit while we can.
>>81422586
Lol niggerdicks came in her pussy while she was wearing that outfit and making that face
>>81424623
Then reconcile this graph with the fact that japan has experienced 0% gdp growth since the 90s
>pro tip: you can't
>>81423874
>Inflation has been tracking well below the feds 2% target rate for years now, there hasn't been a period in american history with lower inflation than we have now.
I know this is true going by the official stats but I seriously have a hard time believing this. Maybe it's because I'm going by local changes or not examining enough goods.
I think part of the disconnect is from the CPI taking into account virtually everything consumers touch, right? So we have all of this cheap shit from China that is priced at historically low levels. Your consumer electronics, your clothing and so forth.
Meanwhile I don't give a shit about any of that. I wear the same clothes for years at a time, I keep my cell phone 5 years at a time, I keep my computer longer. I'm concerned about the price of housing, higher education, my health insurance. I'm guessing most people share the same concerns. And you cannot tell me those costs are rising at 1% per annum.
Not an economist, I took a macro and micro years ago and that was it.
Deficits literally do not fucking matter. Nobody cares but millennials.
Correct and that girl is a coal burner
>>81425000
I can
if gdp growth isn't always correlated with inflation
which it isnt
because of capital structure
>>81422586
Those are not inherently bad. Printing money does not result in inflation if the economy growth goes along.
>>81425400
>implying you wouldn't smash
>>81423812
Implying oue countries are any different about the system ...
Gold standard fags are retarded. Low, stable information is very beneficial. If you are in debt, that makes you debt less significant.
Only Jews benefit from deflation.
>>81425532
OH GOD WHY
>>81425144
I agree with this to some extent.
What a lot of people don't realize is
>The creditors of the US government are just the US people. When you have a son he doesnt inherit govt debt, he inherits bonds you owe which will be payed back to him
the big problems with it now are
>debt being held by foreigners aka the chines
>interest payments becoming so high they are untenable and also crowd out private sector lending
>>81425093
CPI excludes very volatile things like energy, housing and fruits etc.
Traditionally this has led to underestimation of inflation because like you said housing is through the fucking roof, and energy usually has been too.
With energy prices declining its less obvious what the net effect is.
I do see though how with housing and higher ed our generation is getting royally fucked by this.
I guess the problem is like you said its an average basket, averaged over all american people. For some people it will be better and for some worse.
>>81425400
And she's not even white.
>>81422586
It's going to sound economically illiterate but it actually doesn't matter. Economies are human constructs where we use pretend valuable stuff as an intermediary to exchange real valuable stuff and pretend to buy pieces of companies from each other.
The entire system is built on human confidence and speculation, you could back your economy with rocks sharpied with 'valuable' and it'd work fine if enough of your audience bought in to the concept.
In this case more money's being printed to allow more to be spent without trying to trick people into nuking their savings by dropping interest. Prices may or may not rise is response but that's controlled by how much people are willing to buy a loaf of bread or a litre of petrol for.
>>81425639
Oh look economics 101 fag tuned in.
>>81425402
I dont believe in the so called phillips curve, ie a relation between inflation and output/employment
but if you say gdp growth isn't correlated with inflation, well in japan they have had 0 of both for almost 20 years now. that seems pretty correlated to me
It's years that the EBC is pumping 80 billions of € per month in an attempt to raise inflation (eurozone is in deflation) and nothing is happening. They simply continue to print and throw money and nothing is happening non a +0,1% of inflation. Nothing.
During a ECB conference a journalist asked sarcasticly to Mario Draghi "what next to fight deflation?will you throw money off an helicopter?" and Draghi answered seriously "helicopter money?we're thinking about it".
Go figure.
>>81425725
Yup, this is the key observation that money is only 'real' or has an effect in the very short run.
In the long run the overall amount of money in the economy doesn't matter. If we had 10billion or 1 billion in circulation in canada over time it wouldn't make a difference, prices would adjust but output and employment would stay the same and so would living standards
>>81422586
Printing money won't cause inflation if it offsets falling credit.
>>81425742
I'm happy to derive the optimal weight matrix for efficient GMM of macroeconometric estimation if you want :^)
>>81426059
Economics is retarded. Studying accounting because I want a job. Economics is literally sociology tier.
>>81426144
I study math.
enjoy your job being replaced by a computer, dumb fuck
>>81422586
OP, you just discovered why interest rates will never be higher than a half percent again
>>81426144
>PwC lists accounting as the #1 profession to be entirely automated. Most jobs getting destroyed by the end of the decade.
hopefully tim hortons is hiring
http://www.accountantsdaily.com.au/latest-news/17-news/8188-accounting-jobs-most-at-risk-from-automation-warns-pwc
>>81425532
where's the rest of it?
>>81426340
Certain processes will be automated, but accounting is a lot more than basic book keeping and data input.
To say all aspects of accounting will be automated is ridiculous you clearly don't know what accountants do.
>>81425532
Who is this cum drum?
>>81425798
Japan is a special case in many ways.
They had a large technological boom, and were ahead of everyone else because nobody else could produce what they could produce as well as they could. Then other advanced countries started to be able to compete, so they couldn't get out of their position of an economy pushed so far forwards but now having to actually compete with others which weren't nearly as productive per capita in those sectors before.
They had to keep going forwards. But their policies were all 'lets try and shore the economy up' rather than 'lets make sure to simply remain competitive while these guys get a break from our complete dominance of a short while ago'
So now they're stuck having spent a bunch of borrowed money and used up all of the slack there is in their interest rates but with nothing to show for it because with all the PUSH PUSH PUSH policy they only managed to remain competitive rather than letting it slide a little which would have kept them moderately competitive without artificially fighting against the rising tide's lifting many other advanced countries' boats
imho
>>81426448
> As a result, the demand for accountants will decrease dramatically across many industries in the coming years.
lel.
I am sure your professors tell you its an in demand field as they cash your tuition cheques and government subsidies.
Shoulda done stem you dumb fucking idiot.
Hopefully the sociology baristas at starbucks wont look down on you too much when you are washing dishes there
>>81423470
No
>>81422586
Deficit economics is simply borrowing from the future to pay for the present. It works fine on an individual level but not with the government
Government deficit economics means the money will either have to be paid back or the country will have to default and have their currency collapse.
People in favor of deficit economics in Western nations are in favor of more immigration as the natural population is not growing fast enough to pay off the debt.
>>81422586
Keynesian "economics" was a mistake...
>>81422586
Not necessarily, Keynesian economics states that you need to either increase spending or lower taxes in a recession so having short term deficit spending isn't a bad thing. Debt in itself isn't a bad thing unless it's unsustainable or owed to foreign sources.
I did macro 101 trust me
>>81425639
>>>81425144
>I agree with this to some extent.
>What a lot of people don't realize is
>>The creditors of the US government are just the US people. When you have a son he doesnt inherit govt debt, he inherits bonds you owe which will be payed back to him
>the big problems with it now are
>>debt being held by foreigners aka the chines
>>interest payments becoming so high they are untenable and also crowd out private sector lending
The problem with bonds are that people who hold them tend to be richer also if the money is wasted on shit like entitlements that don't improve long run aggregate supply the millennials are inheriting debt and the bloomers are spending it.
>>81422586
Your lib friend can't into basic economics.
