Comments on: US Government Growth 2009

By: Nima

Nima — Wed, 16 Dec 2009 21:26:02 +0000

Sure, I hope you have the capability of learning from it.

By: sb

sb — Wed, 16 Dec 2009 21:19:14 +0000

bravo response. I can see why your site is just a hot bed of thoughtful economic discussion with responses such as that.

By: Nima

Nima — Tue, 15 Dec 2009 02:31:50 +0000

Oh, OK. That statement is indeed a different one, albeit just as ridiculous.

By: sb

sb — Mon, 14 Dec 2009 23:25:30 +0000

At what point did my post say the dip after 1933 caused the depression? My post clearly states the slow down in spending, measured in aggregate or relative to GDP, PROLONGED the depression.

By: Nima

Nima — Sat, 12 Dec 2009 20:15:07 +0000

@sb: Spending fell by a few percentage points after 1933, but STILL remained way above the 1930 level. Regarding doubling of expenses: Of course I meant the doubling of expenses as percentage of GDP. Just because GDP collapsed that doesn’t change the fact that government intrusion doubled in the very process. Something that we can observe again today.

To say that this tiny dip in spending after 1933 was the CAUSE of the depression which had already been going on for 4 years in plain ridicuouls.

By: sb

sb — Fri, 11 Dec 2009 21:38:36 +0000

“During The Great Depression of 1929, the government already made the mistake of spending more money instead of less. Note the doubling of expenses from 7% in 1930 to 15% in 1933.”

Try studying your own graph. According to your graph, spending fell after 1933, and we all know this is the reason why the depression was prolonged. And spending did not double from 1930 to 1933. GDP collapsed during this time period, so it was higher relative to GDP but did not double in aggregate. Misleading statement.

“In particular the war times were hard on the American people, with its 90% income taxes and rationing policies.”

Yes a 90% top tax rate sucked but wars were paid for back then. If we actually paid for wars today, the blind public would wake up to how their money is being spent and they would not last as long (or would be prevented). Out of sight out of mind is a terrible fiscal policy, and we are paying for it today. It’s pathetic how people stood by while we sunk $2 trillion in two wars, but you try to help people with health-care suddenly everyone is worried about the deficit and throwing teabags at each other. Pathetic.