He’s a socialist and mistakenly thinks governments can allocate capital better than free markets. I did like all his other suggestions.
Debt
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you know he was run out of texas. speaking of both, incidentally and coincidentally, my texan sent me a text of what he was doing this past weekend.
building a ......................................................................... pergola
And I'm open to broadening the definition of "gift" to include alimony income for spouses who never worked or don't work now but just live off of their ex's largesse.
Applying the term "free market" to heirs misunderstands what it means and how it operates. Human emotion and irrationality govern there, but with the cost of such irrationality not borne by the grantor. It's a kind of (analagous to, not exact) externality of our tribal psychology (and yes, I just made that up!).
I actually developed a lot of these ideas drinking in bars throughout Austin, trying to get a rise out of my Texas drinking buddies and arguing throughout the night. Drunken policy debates were fun, especially in the pre-internet age, when you could just make up stats or references and insist they were true.
New Foreign Direct Investment in the United States, 2020 | U.S. Bureau of Economic Analysis (BEA)
Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $120.7 billion (preliminary) in 2020. Expenditures were down 45.4 percent from $221.2 billion (revised) in 2019 and below the annual average of $314.4 billion for 2014-2019. As in previous years...
“Foreign direct investment” ….over 95% goes toward purchasing existing assets.
Risks and Threats from Deficits and Debt | Committee for a Responsible Federal Budget
After two decades of uninterrupted borrowing – including three years in which deficits surpassed 10 percent of the economy – the U.S.
Is borrowing to invest healthy? I don’t know. I don’t think that is a great defense for budget deficits. What are the future generations getting?
Robert Lighthizer on the need for tariffs to reduce America’s trade deficit
The country’s deficits with China are so immense that new thinking—and hefty tariffs—are required, says the US trade representative under Donald Trump
We are borrowing to “fuel consumption”.
Taking all morality out of it and I’ll use an extreme example. I’d rather give the money away to a bunch of alcoholics and degens of your choosing. They’d spend it recklessly, but eventually the capital would be better allocated than what the government did with it. Governments unfortunately get to continue misallocating capital through debt. They can’t fail (or takes decades) and we have to live with the inflation….aka theft of are most important resource, time.
Consuming cheap Chinese goods is only to our advantage (in the long run) if China is exchanging those goods for our goods where we have a comparative advantage.
My understanding (which is probably wrong) is that China’s cost advantage is due to “suppressed consumption and industrial subsidies”.
We need to see savings and investment in America. Not China
VanPastorMan
Hall of Famer
One issue I think about is the Social Security Trust Fund. It has been raided for years. I am proud that my great grandfather saw this coming. When they were talking about Social Security he went around Washington IN to tell people, "These SOB's say they are going to put this money away for this program, but they won't. They will take our money and spend it".
VanPastorMan
Hall of Famer
How much did Obama put on there? How much has Biden put on there? We as American citizens can't cherry pick. All must be held accountable which would be the House,Senate, and Presidents who are not fiscally responsible. What we should have done in the 80's was pass a balanced budget amendment.
Republicans have been horrible too. They talk the talk then become chickshits when elected. All they can think about is reelection.
TERM LIMITS!
Don't we benefit by paying less for our goods than we would otherwise? The money saved can then be used to buy other things or save?
Friedman thought trade deficits a good sign:
Do Trade Deficits Matter?
Economists disagree whether the U.S. trade deficit is good or bad for the economy. Michael Collins considers the debate, offers his opinion, and suggests a solution.
Don’t forget farm and big oil subsidies. Only way to be fair is to slash every government program by the same percentage including my SS and Medicare. That’s not possible because everyone has something to lose and the public won’t stand for that. I have zero problem with raising taxes as long as it’s done fairly ie the wealthiest Americans pay their fair share. I’ve know many who are extremely wealthy and pay little even in my own family. And they think it’s something to be proud of. While the rest of us in the middle class and below pay the bulk of the taxes because the tax laws were written by the wealthy for the wealthy. My wife and I didn’t get wealthier with the Republican tax cuts a few years ago. But their buddies sure did.Whose ox gets gored?
Old People (SS, Medicare)
Poor People (Medicaid, SNAP, tax credits, etc)
Veterans/Military (Defense, military pensions/retirement)
Take aware all discretionary non military spending and we're still in a massive hole ever year.
Or we could, of couse, raise taxes.
The Federal Budget in Fiscal Year 2023: An Infographic | Congressional Budget Office
The federal deficit in 2023 was $1.7 trillion, equal to 6.3 percent of gross domestic product.www.cbo.gov
Summary of the Latest Federal Income Tax Data, 2024 Update
The Tax Cuts and Jobs Act (TCJA) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction and child tax credit, and more.
taxfoundation.org
Notice that total share of income taxes paid line. Bottom 50% is 87.7 where as the top 1% is 45.8. I noticed. Did you get a stiffy when that tax cut passed? I’m heavily in favor of cutting spending but Congress won’t ever do it because they all have their hand in the pie. And they like how it tastes. They will cut everyone else’s programs but not their favorites.Summary of the Latest Federal Income Tax Data, 2024 Update
The Tax Cuts and Jobs Act (TCJA) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction and child tax credit, and more.
Because we have elections every two years it’s going to take some kind of cataclysmic event for any change to occur.Across the board. I hate cori bush but I’m not picking on her here but using as one tiny example of just one rep on community projects. At least half of this is bullshit - bc it’s unnecessary, bc it won’t work, bc funding from other sources is available. This is a drop in the ocean but if we are ever going to get lean this shit adds up.
Congresswoman Bush Selects Fifteen St. Louis Projects for FY23 Federal Community Funding Projects
The Official Website of Congresswoman Cori Bush of Missouribush.house.gov
But this is sort of interesting
The Programs You’d Have to Cut to Balance the Budget (Published 2023)
Without trimming popular programs or raising taxes, cuts to the rest of the federal budget would have to be monumental.www.nytimes.com
I think it’s a balancing act.Don't we benefit by paying less for our goods than we would otherwise? The money saved can then be used to buy other things or save?
Friedman thought trade deficits a good sign:
Do Trade Deficits Matter?
Economists disagree whether the U.S. trade deficit is good or bad for the economy. Michael Collins considers the debate, offers his opinion, and suggests a solution.www.industryweek.com
To close the deficit we have to:
1. Cut spending
And/or
2. Increase taxes
In my mind…those would lower private savings.
What happens if we:
1. Close the budget deficit
2. Stop issuing new bonds
3. Do not take any action to rebalance trade
I don’t know.
I think our industrial capacity would continue to decline due to “trade abuses and unfair competition”.
Does America Really Need Manufacturing?
Reprint: R1203G Too many U.S. companies base decisions about where to locate production largely on narrow financial criteria. They don’t consider whether keeping manufacturing at home makes more sense strategically or take into account the impact it might have on their ability to innovate. The...
End up with “less innovation”. Probably slower productivity.
End up with fewer “quality jobs”. Probably more inequality ( I love that word). Which becomes destabilizing. Also slower growth?
Technically, we don't have to raise tax rates, we have to raise tax revenues. Grow the pie is an option.I think it’s a balancing act.
To close the deficit we have to:
1. Cut spending
And/or
2. Increase taxes
In my mind…those would lower private savings.
What happens if we:
1. Close the budget deficit
2. Stop issuing new bonds
3. Do not take any action to rebalance trade
I don’t know.
I think our industrial capacity would continue to decline due to “trade abuses and unfair competition”.
Does America Really Need Manufacturing?
Reprint: R1203G Too many U.S. companies base decisions about where to locate production largely on narrow financial criteria. They don’t consider whether keeping manufacturing at home makes more sense strategically or take into account the impact it might have on their ability to innovate. The...hbr.org
End up with “less innovation”. Probably slower productivity.
End up with fewer “quality jobs”. Probably more inequality ( I love that word). Which becomes destabilizing. Also slower growth?
Maybe the U.S. should return to good old-fashioned plundering? Conquer or colonize some natural resource rich places that are suffering due to poor economics and leadership and turn them into economic dynamos. Cuba and Venezuala would make good targets.
Speaking of, on Sunday our local IGA ran a special. 12 piece fried for 12 bucks. I was all over that.
Told the wife fried chicken every Sunday from here on out. She sized me up and down and said no chance.
Grow the pie is why I don't think we need drastic action. 3% growth per year will catch up if we can hold expenses, maybe small cuts. Social Security is an entirely different question. We need fewer expenses and increased revenue.
Look at the semiconductor industry. Where were we at the beginning and where are we now?
Good chance that is directly related to our trade deficits. Leads to savings and investments for China.
Cool. I'll mark you down as a "yes" for conquering other nations.
We can make you Territorial Governor of Cuba, if you like.
Or, maybe get everyone to pay their fair share. Another solution that would never pass would be a flat tax on all but the poorest. Never in a million years would that pass. Imagine all the special interest screaming along with the schools that offer accounting. Much less need for those guys when your short form is really a short form.
When Warren Buffet says he pays less in Federal Income Tax than his secretary you know there’s a problem. Unfortunately, any and all solutions from our cheap seats are to simplistic and we really have no idea of all the downstream effects. But nice to dream.
Your statement that it’s a balancing act is correct. And that’s why a solution could never be found. Congress doesn’t even know how to spell the word.I think it’s a balancing act.
To close the deficit we have to:
1. Cut spending
And/or
2. Increase taxes
In my mind…those would lower private savings.
What happens if we:
1. Close the budget deficit
2. Stop issuing new bonds
3. Do not take any action to rebalance trade
I don’t know.
I think our industrial capacity would continue to decline due to “trade abuses and unfair competition”.
Does America Really Need Manufacturing?
Reprint: R1203G Too many U.S. companies base decisions about where to locate production largely on narrow financial criteria. They don’t consider whether keeping manufacturing at home makes more sense strategically or take into account the impact it might have on their ability to innovate. The...
End up with “less innovation”. Probably slower productivity.
End up with fewer “quality jobs”. Probably more inequality ( I love that word). Which becomes destabilizing. Also slower growth?
VanPastorMan
Hall of Famer
I hope that some heartless nut doesn't decide that few expenses means cutting people off from medicine so they die. I would vote for raising the retirement age over that. So Grandpa has to work five more yrs. At least he gets to live.
Eating fries chicken is always economically viable.
Sometimes you need to bust out the pan and oil and do it yourself.
Counterpoint. Cleaning the cast iron after frying chicken at home is such a huge pain the ass that it’s always more economical to just buy it.
First, they came for the crab legs, and I did not speak out because I do not eat crab legs.
Then they came for the fried chicken...
Early nominee for 2025 Post of the Year.First, they came for the crab legs, and I did not speak out because I do not eat crab legs.
Then they came for the fried chicken...
I have made it at home before. My wife will not allow it ever again.
Good post. Have no idea on the answers to your questions.I think it’s a balancing act.
To close the deficit we have to:
1. Cut spending
And/or
2. Increase taxes
In my mind…those would lower private savings.
What happens if we:
1. Close the budget deficit
2. Stop issuing new bonds
3. Do not take any action to rebalance trade
I don’t know.
I think our industrial capacity would continue to decline due to “trade abuses and unfair competition”.
Does America Really Need Manufacturing?
Reprint: R1203G Too many U.S. companies base decisions about where to locate production largely on narrow financial criteria. They don’t consider whether keeping manufacturing at home makes more sense strategically or take into account the impact it might have on their ability to innovate. The...
End up with “less innovation”. Probably slower productivity.
End up with fewer “quality jobs”. Probably more inequality ( I love that word). Which becomes destabilizing. Also slower growth?
I'm just finding it really odd watching the former party of free trade and Milton Friedman now touting ending the trade deficits, tariffs, etc. I know the Dems aren't going to defend Friedman's ideas. So are they now dead (politically) in this country?
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And have a little pen in the back yard. Call it renewable fried chicken and the grass under the cage will be green. Win Win.
Not if you have kids who you've taught how to properly clean them.
