Author Topic: Which one was right?  (Read 505 times)

pecunia

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Which one was right?
« on: November 10, 2018, 05:19:10 PM »
You've all probably seen these before, but which one of these guys was right?

https://www.youtube.com/watch?v=d0nERTFo-Sk

https://www.youtube.com/watch?v=GTQnarzmTOc

I was listening to a talk today that proclaimed that since Ronald Reagan had become president years ago, the government used a monetarist approach rather than the regulation and stimulation of preceding years.  The claim was that these policies led to the crash of 2008 and since few changes have been made, history will repeat itself.

Seems like despite the great income inequality and the fact that real incomes are shrinking, technological advances are still giving most people a pretty good life and things are still edging forwards so maybe the government policies are correct.

There are some guys on this site that really think, "money."  I'd be interested in any thoughts / opinions.  You folks know how the world really goes round.

scottish

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Re: Which one was right?
« Reply #1 on: November 11, 2018, 09:00:19 AM »
:-)   Those were fun videos.  thank you!

It's a rare government indeed that can resist the call of deficit spending to satisfy their whims.   We get politicians like this guy:

Quote
During a constituent briefing about Ontario’s new budget, a Liberal MPP said he was “proud” of the province’s high levels of debt and “would do it again.”

“We have tripled (the debt) and we’re proud of it, because we can afford it,” MPP Bob Delaney said in comments published by the Mississauga News.

Ontario’s debt, which currently stands at $311.7 billion, is the most held by any sub-sovereign government in the world. It has also grown precipitously under the current Liberal government, who first took government when Ontario’s debt stood at $138.8 billion.

this is from the National post    https://nationalpost.com/news/canada/ontario-mpp-proud-of-provinces-debt-and-would-do-it-again

Yet I look at our debt service charges and note that the cash flow going to pay for the debt could address upcoming problems in infrastructure and health care.

My opinion is that politicians will try to find a credible economic theory to justify whatever they want to do.   

The reality is that governments are terrible at actually doing anything.   There are numerous examples.   In Canada, for example, look at the federal govt's attempts to transfer to a unified pay system.    Or buying that pipeline in northern Alberta.  Or purchasing military ships.   Or building the long gun registry.    I believe that we should only have the government do things that can't be done by the private sector.   It's too expensive to have them doing anything else!    Which things are actually done by the government is a much more difficult question to answer.




pecunia

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Re: Which one was right?
« Reply #2 on: November 11, 2018, 10:10:24 AM »
:-)   Those were fun videos.  thank you!

-snip-

The reality is that governments are terrible at actually doing anything.   There are numerous examples.   In Canada, for example, look at the federal govt's attempts to transfer to a unified pay system.    Or buying that pipeline in northern Alberta.  Or purchasing military ships.   Or building the long gun registry.    I believe that we should only have the government do things that can't be done by the private sector.   It's too expensive to have them doing anything else!    Which things are actually done by the government is a much more difficult question to answer.



Well, Scotty - I live across the border.  I'm afraid I'm not up to speed as to all the shenanigans the Provinces have done.  I used to work for a guy from Fort Francis that had crossed the border and he expounded on what was happening up there, but that was long ago.

There are two things that come to mind:

1) The United Nations has said Canada is one of the best countries in the world to live in.
2) You give Health Care for your people.  This is one of those things that can be provided by the private sector.  In fact it is done this way over here.  Is it better that millions go without treatment and would not if the government provided the care.

A third thing I've been thinking about is that for the past generation we've been exposed to propaganda that says government is bad.  Old Reagan is famous for saying that, "In this present crisis, government is not the solution to our problem; government is the problem."  Sorry, government is the people in a democracy.  If working correctly, it is the mass of people solving mutual problems.

The recent video I saw pointed out that there are rich forces out there who control our media that tell us that government is the problem.  I see roads, bridges, the US postal service, regulation that ensures we can trust the food we purchase, police, firemen, public libraries and public schools that tell me otherwise.  I see many of those things as an investment in the future of a country.  This is an investment that will not be made by private entities.

On the other hand, I don't want the government building cars or cell phones.

Will laissez faire economics be enough on it's own to do the best job of providing goods and services?  I think government has a role and this may include dampening the business cycles.  I hope to see more entries from the wise people on this site to set my ideas straight.


scottish

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Re: Which one was right?
« Reply #3 on: November 11, 2018, 03:28:36 PM »
If all those companies that got caught up in the sub-prime mess 10 years were left on their own, would the failures have changed the attitudes of companies in the future?    Nope.    But it would be nice if the people responsible had to suffer consequences for their actions.

You have a point that the government has a role to play here.