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Author Topic:   Austerity measures have they ever saved an economy?
ramoss
Member (Idle past 640 days)
Posts: 3228
Joined: 08-11-2004


Message 12 of 168 (648751)
01-18-2012 8:58 AM
Reply to: Message 1 by DC85
01-16-2012 9:02 PM


Well, it is both a spending problem and a revenue problem. The issue is that in 2000, Bush did massive tax cuts, particularly for the rich. .. and we also had two wars to deal with in 2002. That increased the rate of debt drastically. We are currently at the lowest rate of taxes since before the depression.
We need to get rid of the Bush tax cuts.. and also cut spending.

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Replies to this message:
 Message 13 by NoNukes, posted 01-18-2012 9:47 AM ramoss has replied
 Message 14 by crashfrog, posted 01-18-2012 10:35 AM ramoss has replied

  
ramoss
Member (Idle past 640 days)
Posts: 3228
Joined: 08-11-2004


Message 29 of 168 (648864)
01-18-2012 11:34 PM
Reply to: Message 13 by NoNukes
01-18-2012 9:47 AM


Re: Cutting spending and raising taxes
Yes, it is.. to a certain point. However, I think that the balance between debt and revenue has become to great. ... I would like to see the percentage of debt (not deficiet) go down A large part of the money coming in goes to paying off the interest in the debt. Since Regonomics, the very rich percentage of income has been keeping up with the GDP, but the middle class and poor have started eroding. This trend has to reverse itself.. and have the middle class and poor keep up with GDP (and rich erode for a bit). I would like to see the gap between the rich and poor get back to pre-reagan levels.
Once you reduce the debt enough, you can use the money that WOULd have been going to paying off interest in infrastructure and new technologies.

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ramoss
Member (Idle past 640 days)
Posts: 3228
Joined: 08-11-2004


Message 30 of 168 (648865)
01-18-2012 11:37 PM
Reply to: Message 14 by crashfrog
01-18-2012 10:35 AM


The specific things that have to be cut is items like 'The war in afganistain'. Blowing people up doesn't do a lot for public economy over here.
Cut the subsidies to farms that are being paid NOT to grow things. Eliminate the loop holes for the rich. Stop paying corporate welfare.
On the other hand, building and maintaining bridges, rebuilding the roads, sewer systems, and the infrastructure is a very well worth while investment.

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ramoss
Member (Idle past 640 days)
Posts: 3228
Joined: 08-11-2004


Message 132 of 168 (649388)
01-23-2012 6:50 AM
Reply to: Message 130 by Straggler
01-23-2012 5:49 AM


Re: "Knowledge Economy"
Sure. But it's not just China. When I started in IT every IT department had an in-house development section creating bits of bespoke code, database queries etc. Now I don't know of anywhere that has not outsourced this function to India or Eastern Europe. They are qualified, very good and comparatively cheap.
While it has been sourced to India, the idea that it is 'very good' is quite incorrect. It's cheap, but you get what you pay for. The problem is the turn over in those jobs is so great, the people aren't properly trained.

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Replies to this message:
 Message 134 by Straggler, posted 01-23-2012 8:40 AM ramoss has replied

  
ramoss
Member (Idle past 640 days)
Posts: 3228
Joined: 08-11-2004


Message 146 of 168 (649524)
01-23-2012 11:25 PM
Reply to: Message 134 by Straggler
01-23-2012 8:40 AM


Re: "Knowledge Economy"
Uh. No. I am not. I am talking about support programers. I am in I/T person that deals with networking, and often I have to deal with the application support people that use the network for their job. I am NOT talking support center people.
I also have to deal with operations that have been off shored to Brazil. Initially, they were reasonable, but the tern over was very high, and every 'incarnation' of operations lost technical skill so they are horrible now.
The folks in Argentina are good, and managed to keep their skill level up.. at least the ones i deal with. They don't have the turn over ratio from the ones in India, China, Russia , or Brazil. I am hoping the folks in China get better trained and can actually mange the job.. but I am not holding my breath... the knowledge base for training them properly has evaporated.

This message is a reply to:
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