8
   

Money and all the recompenses

 
 
ossobuco
 
  1  
Reply Mon 12 Jul, 2010 08:19 pm
@firefly,
Not so much personal finances, as there is little I can do to improve them at this point. But, I'm sort of sorry I didn't learn to deal with money in a smarter way earlier in life, and I'm sort of sorry I have tended to skip reading about economics/world economies.
roger
 
  1  
Reply Mon 12 Jul, 2010 08:35 pm
@ossobuco,
It can be fascinating if you can track down a nonmathmatical treatment. There was an economist at Chicago who supposedly kept a sign on his door. Something to the effect that a study of economics might not keep you out of the bread line, but at least you would understand why you were there. Samuelson, I believe.
realjohnboy
 
  1  
Reply Mon 12 Jul, 2010 08:43 pm
@roger,
Samuelson's textbook was used in my 1st Econ class back in 1964. It was already a bit of a classic then and I was amazed to see, just a few years ago, that it was still being used.
engineer
 
  1  
Reply Mon 12 Jul, 2010 08:48 pm
@roger,
Actually, applying simple math or logic can often make mysterious or complicated economics issues simpler. For example, spending stimulates the economy. Now if there are 100 of us and we all have $100 to spend, then we have $10,000 of stimulus available. If we all spend it in our home country, we've stimulated the economy by that amount. Now if everyone gives $20 to the government, and the government spends it, we still have stimulated the economy by $10,000 although the government is going to spend it on roads and police and the military instead of TV and microwaves. Of course, the government will tend to spend more domestically, so we might get a hair more stimulus, but call it a wash. From this very simple logic example, we can see that taxes to not depress the economy (unless you tax someone at such a high level that it creates an incentive to cheat). Likewise, tax cuts paid for with reduced government spending will also not stimulate the economy. But if the government that had $2,000 in the above example gives back $500, but borrows $500 to maintain spending, then the 100 people have $8,500 and the government is spending $2000, so the amount spent is $10,500 and the economy sees more stimulus. That is why "tax cuts" stimulate the economy, not because taxes are cut, but because the government borrows more to maintain spending. That is also why Bush's and Obama's crises plans called for large government borrowing and spending. That provided the stimulus to make up for what we stopped doing when we stopped spending.

Maybe that will be controversial enough to get some response going for you.
0 Replies
 
roger
 
  1  
Reply Mon 12 Jul, 2010 08:49 pm
@realjohnboy,
All my crumby book did was quote him. Seriously, I feel robbed.

Osso, if you are interested in some of the theories, The Worldly Philosophers is worth reading if you can get it on the cheap from an amazon associate merchant, or something like that. Can't recall the author's name - sounded German or something, you know.
0 Replies
 
 

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