What is your solution for an economy that is experiencing a deflationary spiral?

[Siddhartha]

Lets filter out the classic ATP&N lefty vs righty name calling.

What are the options for dealing with an economy that is facing a deflationary spiral?

What economic solutions do you support?

 

[DAGTA]

Allow it to happen.

 

[yllus]

From what little I know of the subject, the key is to re-instill the belief in the people that assets will appreciate in value and are thus worthy of purchase today. Maybe then government incentives to purchase X and Y, and similar incentives to take part in the stock market?

 

[DesiPower]

Create jobs by discouraging outsourcing of all kinds of jobs, tax very outsourced job so heavily that they are virtually forced to hire natives. It will also increase the prices, but more and more ppl will be able to pay for good too. Implement a law today with with a 6 to 12 month moratorium depending on the industry.

/IMHO

 

[theeedude]

Austerity obviously
Let's balance the budget just to prolong and maximize the pain, it builds character.

 

[yllus]

Create jobs by discouraging outsourcing of all kinds of jobs, tax very outsourced job so heavily that they are virtually forced to hire natives. It will also increase the prices, but more and more ppl will be able to pay for good too. Implement a law today with with a 6 to 12 month moratorium depending on the industry.

/IMHO

Creating disincentives instead of incentives for corporations to do business in your country doesn't have a very good track record. Neither does creating artificial barriers at the border - believe me, as a Canadian, I know this well.

 

[Narmer]

You have to be more specific. If the economy is overpriced (wage, products, etc) then you either have to move higher up the chain or you have to let it take its natural course. The latter is extremely painful but the problem could've easily been avoided in the first place by a combination of higher interest rates to slow down growth or saving more.

 

[FerrelGeek]

Austerity obviously
Let's balance the budget just to prolong and maximize the pain, it builds character.

Precisely! Rack up the .gov debt so that we can inflate our way out of the deflationary cycle. You're a genius!

 

[theeedude]

Precisely! Rack up the .gov debt so that we can inflate our way out of the deflationary cycle. You're a genius!

Much better to rack up government debt due to declining revenues and higher unemployment and get stuck in a deflationary cycle much longer.

 

[DesiPower]

Creating disincentives instead of incentives for corporations to do business in your country doesn't have a very good track record. Neither does creating artificial barriers at the border - believe me, as a Canadian, I know this well.

That's one extreme, but US is at the other extreme right now. US has opened its komodo to communists nations that are unfairly controlling their exchange rates and nations that do not give the same liberty to US.

 

[Genx87]

We are? Where is this deflationary spiral outside of the housing market?

 

[Slew Foot]

Save money, wait for dumbshits to lose their assets, buy up cheap shit, profit.

 

[Narmer]

Much better to rack up government debt due to declining revenues and higher unemployment and get stuck in a deflationary cycle much longer.

The problem is nobody wants to raise taxes and interest rates when the economy is booming for fear of going into a recession. Based on the past, politicians would probably increase spending and cut taxes to continue the boom. Therefore, if no one is going to do anything when the economy is booming, now is just as good a time as any.

 

[yllus]

That's one extreme, but US is at the other extreme right now. US has opened its komodo to communists nations that are unfairly controlling their exchange rates and nations that do not give the same liberty to US.

I agree with that. I'm specifically for fair trade, or at least free trade with nations that respect labour laws that resemble those we have in North America.

 

[dmcowen674]

What is your solution for an economy that is experiencing a deflationary spiral?

Ship the poor out

 

[sandorski]

Avoiding it is the best solution.

 

[nick1985]

 

[Siddhartha]

Hoarding?

 

[nick1985]

Hoarding?

http://www.bravocompanyusa.com/BCM-M16-A4-AR15-Bravo-Company-carbine-rifle-s/146.htm

 

[piasabird]

The American public fare the best when the Government does nothing. So Government, get out of the way!

I dont see a deflation, I dont have a deflation. Please lower my prices. The only deflation I see is the deflation of the value of money, which is caused by the government printing money.

 

[Jaskalas]

What is your solution for an economy that is experiencing a deflationary spiral?

If the 24 TRILLION we already invested to shore up a government-bubble economy wasn't enough, then what IS enough?!

JUST SAY NO! To government run economies. You won't like the ending.

 

[MovingTarget]

Blame it on Hoover?

 

[JS80]

"Depends." On what the balance sheet of the government looks like.

But the most correct answer is, start a World War.

 

[Zebo]

There is no hope, US is a has been and World will pass her by and we'll be stuck paying interest to them. Not making anything worth anything to them. Full of retards and deadbeats with no wherewithal to compete - a huge anthropological problem. Maybe y'all can sell your Japanese car to one of the bankers before he retires to Bermuda to await your interest payments (aka taxes)?

Now even KRUGMAN is calling a depression, Zebo warned this over a year ago. Quite simply we have too much debt, unlike any depression in our history, you can't recover without massive restructuring of that debt so people can borrow or spend again. Bankers won't play that.

 

[IGBT]

Liberal icon money guru Krugman, says it's too late. Rice and beans will soon be considered a gourmet meal.