Economic lesson for conservatives!!!?

I then counter with basic math.

A negative X a negative equals a positive.

The liberals spend one trillion on a failed spendulus bill

TIMES

Another trillion dropped down some social justice utopia rat hole

EQUALS

The two Trillion dollars Obama found that would cut the deficit in half by the end of his first term

.

The average conservative has zero understanding of economics even though they claim they know exactly what will fix the economy.

Instead they just believe what their party tells them.

Edit:

"multiplier for government spending is greater than the multiplier for private spending"

Actually, given that government spending would put money in the hands of the poor, the multiplier effect should more than balance out the effect form that money being in the hands of the rich.

You are caught up on the literalness of the statement, "government does not create jobs" instead of the intent of it. Yes, government can create jobs. They, by definition create government jobs. They also throw money at private business in subsidies and targeted tax breaks, usually as a reward for doing something specific like hiring someone. This has created jobs.

The intent of the statement is that, while government does literally create some jobs, they are extremely inefficient at doing so. The cost behind creating a single $40,000 job in the green tech, automotive or public sector area has cost taxpayers $100 thousand, $200 thousand or more. Some of those companies still went belly up or are being kept in place by continued subsidies. They also don't create the quantity of jobs needed for the economy. Government also sucks in understanding the needs of business, micromanages what it does control and doesn't do well in picking winners and losers. The free market does much better at all of that.

Now, about your economic theory. There is economic theory and there is the real world. This theory does not pan out in the real world. Now, the theory of supply-side economics and monetarism HAS proven itself to work each time it's been tried. Economists like Art Laffer and Paul Volcker (durring the Reagan Administration) are modern living examples of this working.

Heres a brief history of it. Warren Harding and Calvin Coolidge cut the highest income tax rate from 70% to 29% and cut government spending 50%. The result: the Roaring 20's and unemployment of less than 2%. JFK's posthumously passed income tax cuts (90% to 50%) also had a good effect on the economy, creating the revenues for LBJ's Great Society spending.

Reagan cut the highest income tax rate from 70% (again) to 28%, plus 15% across-the-board tax cuts. He also had the courage to tough out reigning in the money supply (giving Volcker's Fed cover to do so) that was causing the crippling stagflation. Both of these policies created a new, a solid foundation for the country that supported a 17 year booming economy. Revenues during this time also doubled from 500 billion to 1 trillion. Unemployment dropped from 10.4% to 5%. Across the pond, Margaret Thatcher lowered the highest tax rate from a stifling 95% to mid-thirties with similar results.

Clinton cut the Capital Gains Tax, the already good economy went into overdrive. After implementation of the Tax Relief and Reconciliation Act of 2003 (part 2 of the Bush Tax cuts), unemployment dropped and kept on dropping into the 1st quarter of 2007 to a low of 4.4%. The increase of revenues plus a drop in Bush spending made his 2nd term deficits step down significantly on track with the projection of a balanced budget in 2010. All of Bush's gains were blown out of the water by the mortgage meltdown, unrelated to the tax cuts.

FDR's success in ending the Great Depression is due to supply-side (trickle down) economics. Other than dealing with the banks in 1932-33, most of his push was Liberal Progressive programs based in Kenysian theory and fundamental change of the country (where have I heard this recently?). The depression lingered on for seven more long years. Then in 1940, despite himself, he was forced to buy planes, tanks, ships, bombs, bullets and beans. This was trickle-down economics aimed straight at business. The depression was over in a year.

When implemented correctly on a business environment that is fundamentally sound, tax cuts work well. It's like shot adrenalin the company needs to expand. This expansion creates real, sustainable jobs not paid for by taxpayers. This increases revenues to the government. These tax cuts makes it easier for start-ups to flourish, adding additional revenue.

You want the theory of how this works? Here is a video on it with the Reagan administration.

That isn't a question, it is a rant. Secondly, it is a superficial handling of a complex subject without addressing the actual meat of the matter. Now, let's look at what happens when G is high enough to reduce the capital available to purchase, investment or expansion. Obviously it curbs those things, which are needed for a healthy economy and suppresses private job growth.

@ Actually, the money supply would only increase numerically, if at all. but not in buying power due to inflation caused by increases in government and fewer dollars available to the private sector. Government does not create wealth, it only uses and reduces it.

People who cannot figure out how to create value walk the dusty halls of universities telling those who can and have how it can't be done.

Make more than you spend, and spend what you spend wisely has allowed me to own a home outright, a whole bunch of vehicles, and be completely debt free for years. And have plenty to spare to help others who are down on their luck. All without your formula.

If you had any sense, you would know that government creates no jobs no wealth and no value. They can only create a positive climate for it.

government can only spend money that it took from someone else, your desire for increased government spending only works IF the multiplier for government spending is greater than the multiplier for private spending

*** I know they share the same multiplier, that is my point

My lesson to liberals: go get jobs you lazy filthy animals and stop sitting on your roach infested couches ranting on yahoo answers and living off of welfare

Yes because that worked for detroit, lol.