Skip to comments.Few Humble Thoughts about the Economy By Ben Stein
Posted on 11/17/2008 3:24:47 PM PST by Responsibility2nd
We are clearly in a serious slowdown. A slowdown this serious, fed by a credit shutdown, will not stop automatically or at least might not.
This is way beyond a normal recession. At this point it might become self reinforcing and become like a Depression in which we reach what economists call a state of equilibrium far below full employment.
This is what happened in the great depression and could happen this time. The main contributor to this unusual situation is a serious credit shortage, generated by fears fed by the collapse of Lehman and the problems at other lenders such as Wachovia and Washington Mutual and financial firms such as Merrill Lynch and Bear Stearns.
There is no other entity besides the government that can restore this situation to a full employment equilibrium position. State governments are suffering and so are municipalities. Corporations are obviously suffering. Only the federal government can literally print money to restore the situation.
Any stimulus will have to be large and fast. The analogy would be to falling off a cliff. It takes a certain care to keep from falling off a cliff but it is a lot easier than retrieving you after you have fallen. The history is that only a large amount of stimulus at this point when the private economy is in shock will help. This means a lot of stimulus applied on a continuous basis.
(Excerpt) Read more at larrykinglive.blogs.cnn.com ...
This is not one of those times.
Gads, you are right!
Ben Stein has been consistently more often wrong than right since early 2007.
There are embarassing playlists of TV panel discussion clips going around from 2007 that focus in on Stein’s lack of understanding as to what was going on.
Stein was an Obama supporter.
Has EVERYONE been drinking the Obama Kool-Aid?
Printing “money” does not cause prosperity.
Huge cuts in marginal tax rates are ALWAYS a good idea.
Repeal of the 16th Amendment has been a good idea ever since the day is was “ratified.” (If it ever was.)
How do people who are normally sane—like Ben Stein—go insane so suddenly?
I do believe that Ben has become a senile citizen. Too bad, he always seemed to be a smart man.
"In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone? ...the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered? ...raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics."
Yes there is, to break the power of the UAW. Let them get protection in Chapter 11, break the union, and private capital may well be willing to invest after the union is broken.
Did you thank me for that tagline? ;)
"Um, he's sick. My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night. I guess it's pretty serious."
Hey I just needed an excuse to post a pic of Kristy Swanson.
I think Stein has a brain tumor.
He hasn’t been right in the head for a while now.
AP: Stein, an actor, writer and economist, has contributed $2,000 to Franken’s Minnesota Senate campaign. The two men have known each other for about 30 years.
“I’m struck by what an incredibly capable, hard-working guy he is,” Stein told The Associated Press in a telephone interview Thursday. “He’s a very smart liberal, he’s a thoroughgoing patriot, and I would feel better with him in the Senate.”
Franken is one of several Democratic candidates vying to take on Sen. Norm Coleman, R-Minn. As a former “Saturday Night Live” star, Franken has received scores of contributions from people in the entertainment industry, but the donation from Stein doesn’t fit into the GOP’s talking points about liberal Hollywood elites bankrolling Franken’s campaign.
I have said before and I say again, we are still in the Great Depression. The primary industry on earth is the finance industry. It began about the instant Smith’s Wealth rolled off the printing presses making that book instantly obsolete. The finance industry can loan out ten or twenty times what it is worth, based on anticipated return, and if the return doesn’t, that loan won’t.
You’re kidding? Where did you see that?
It devalues debt. The idea is to get debt under control, while (hopefully) not screwing the lender. But since the lenders are holding devalued property that they would like to unload and return to positive cash flow...etc.
See, if done correctly, (please pay no attention to any possible unintended consequences,) everybody wins.
Ben Stein and friends ridiculing Peter Schiff , President of Euro Pacific Capital who predicted the financial collapse of the USA
Let me welcome you to FR and extend my agreement to your observations on the ominous nature of a Marxist regime here. I am a twelve year veteran of the Cold War, the son of a 20 year veteran of the same war. I lost friends in that war and know the philosophy for what it is: Tyranny. To paraphrase the Blues Brothers: I hate Illinois Commies.
I hope that the electoral map turns out in our favor, as a lot more is riding on it than many realize.
Meanwhile, yours truly had this in his tagline as of October 27th: 17 posted on Monday, October 27, 2008 11:44:54 AM by dfwgator (I hate Illinois Marxists)
So who should get credit? But then again, great Gator minds think alike. ;)
Is Kristy Swanson wearing an Annie Oakley medal with some kind of a cluster?
The idea that the economy could be in equilibrium with large numbers of people seeking work and not finding it could be true only if a minimum wage law kept entrepreneurs from hiring them at a wage that made their product affordable. Unfortunately we have such a situation, but it's not inevitable.
One of my classmates (and best friends) in high school (mid-1940s) had a father who got wealthy during the Depression. He hired people to salvage bricks from old buildings, chip the mortar off them, and make them saleable. He paid his workers 25 cents per hour. At that wage, salvaged bricks could undersell new ones. At that time there was no minimum wage.
So long as there are no impediments to hiring workers at wages that allow the product to be sold at a price people are willing to pay, equilibrium has to occur at "full" employment. That is, allowing for people between jobs, people in school, etc., everyone who wants a job can have one. Most economists consider 5% "unemployment" to be the nearest we can come to "full employment" once these factors are taken into account
Ben needs to take a few days off.
Yes, I don’t think he’s really had something significant to offer in the last five years, at least.
I thought “Expelled” was brilliant. Can’t say I agree with his politics...
But there is more to the depression than a shortfall of aggregate demand. For one, FDR did his best to keep prices from falling, even though that would have been an excellent tonic. The problem wasn't a lack of government activity but too much.
FDR's policies prolonged Depression by 7 years
Why Government Spending Does Not Stimulate Economic Growth
The best response is let the system work without government stimulus. Let the bankruptcies happen. Also, stop damaging the economy with over-regulation including unnecessary, misguided environmental regulation.
Notice how well the stock market and economy have turned out after passing the stimulus package? (sarcasm). Now Paulson doesn't even know how to spend the money that he had to have "right away."
Haven’t seen it, and I know that the subject matter could be handled brilliantly.
Wow Great Gator minds do think alike!
How ‘bout them gators huh?!?!?!?!?!?!?
Best I can tell, its OK to just make stuff up.
“Stein was an Obama supporter. Enough said.”
The following quotes indicate the opposite:
Friday, February 15, 2008
They Said It!: Ben Stein On Barack Obama’s Economic Plan
Stein: “Mr. Obama could become president and derail everything because his understanding of economics is 100 percent wrong. ... I must say I’m so scared about Mr. Obama becoming president. I can hardly tell you.” (CNBC’s “Kudlow & Company,” 2/14/08)
Stein: “[Obama] understands nothing. He wants to shut down the oil companies, take away their profits. Kill every state teacher’s pension fund that’s invested in XOM [Exxon Mobil]. I am terrified of this guy. Either somebody has got to wise him up or he has to wise up himself or he will be real dangerous.” (CNBC’s “Kudlow & Company,” 2/14/08)
(A Product Of The RNC Research Department)
“I thought ‘Expelled’ was brilliant.”
Yes, Ben Stein did a superb job with that movie. It’s a must-see, in my opinion.
Right - not one of those times. In any case, it is all moot. The Dims next year will “bailout” the auto companies in tune with the demands ofthe unions.