Is America going to collapse?

[Danny Ocean]

Well, i don't subscribe to the popular doctrine of artificially blowing up the economy. If an economy cannot sustain itself, then what it needs is not more cash to burn, but instead fixing of its defects.

You're describing it as if the stimulus packages are over-growing the economy. What do you mean by 'blow up'?

Also consider this: Even with the government stepping in to keep the economy afloat, people are suffering, a lot. Think how bad it would've been if the government hadn't stepped in!

I in my past reply wrote "not impossible.........." - what i didn't speak out was "just very unprobable".

Improbable. Don't worry. The implication of the phrase 'not impossible' is an obvious one. What I don't know is what you are claiming is unlikely. What do you think is unlikely exactly?

If you look at the recent history of the USA, it is unambigiously clear, that it is very motivated to blow up the economy, while not very motivated and disciplined at running a real budget surplus, by reducing gov spending (which does not in all cases need to involve axing of features - there is such a thing as efficiency of gov services, and govs rarely make use of that), and increasing taxation. The USA shows no signs at all of making massive changes to the spend/tax balance. In fact, spending is quickly INCREASING, not decreasing.

Prove that governments rarely make use of efficiency savings.

Justify a budget surplus. Why is a budget surplus a good thing? Why is a deficit a bad thing?

What is bad about spending currently increasing?

Or in short: The US' plan to fix their budget problem, is the idea that if the budget is just negative enough, it will someway become positive (via an endless series of "stimulus" packages, which is just a nice sounding description for "printing and giving away free money").

Printing money is called quantitative easing. Quantitative easing works. Whether you object to it morally or not, the fact of the matter is that it props up aggregate demand, reduces the value of fixed-rate debts, and increases exports while decreasing imports. These are all to an extent good things.

A stimulus package is designed to increase (Stimulate) Aggregate Demand. AD is composed of:

Consumption-- People buying stuff
Investment-- Firms buying stuff
Government Spending-- Government buying stuff
Exports-Imports-- Foreigners buying your stuff-You buying foreign stuff

A stimulus package can involve many measures including, but not limited to, quantitative easing- a monetary measure. The bailing out (Purchasing) of the banks is one other example of a stimulus measure, designed to prop up investment. This allowed the banks to operate at regular levels even during the time of crisis, which in turn allowed firms to borrow to buy more stuff, and people to borrow to buy more stuff. A stimulus package also includes fiscal measures, such as raising or lowering certain taxes, and increasing or decreasing certain government expenditures.

So you see how a 'Stimulus Package' is not just a nice sounding description for 'Printing Money'.

 

[Lyx]

Oh, and our debt is around 3% of GDP (and we freak about that - your debt, from memory is around 60% or more of your GDP...), if you want an idea of how little a relationship there is between large gov't (or medium gov't in our case) and debt.

FYI, accounting for all relevant things, it is now at around 100% of GDP (yes right!)

@Danny Ocean:
Have fun driving off the cliff. Just don't invent excuses afterwards.

 

[NaramSuen]

What do you think? Are we going to survive or should I start speaking INDIAN/Chinese?

I think I might see a reason why you can't find a job... There's no Indian language, there's many languages in india. Read a book...

Technically there is no Chinese language either, it is a language family. What people call Chinese is really Mandarin Chinese (sometimes referred to as Standard Chinese). However, it is pretty difficult to just start speaking any language, you usually have to study it first.

 

[Feriluce]

Because I'm getting worried. I can't find a job anywhere, I'm trying my best. Gas prices are going so insanely high my parents are having a hard time getting to work in the morning, and I know there are family way worse off than mine. I heard prices are going to be $5.00 later this year.

How much longer can this last? I want to finish college and get a career but I fear there won't even be a job market when I get out. I have this overwhelming sense of doom crushing down on me. (Mind you I do live with a dad that is the biggest prophet of doom you've ever seen.)
I know history is full of depressions, but the world is a much different place, population growth no longer bolsters an economy like it did back in the day.
What do you think? Are we going to survive or should I start speaking Indian/Chinese?

Wait. Theres places in the world where getting clean drinking water is nearly impossible, and you complain that the world is going to end because its getting a bit more expensive to drive a CAR?
Get some damn perspective man.

 

[NaramSuen]

there is no way in hell china(I don't know about india) that china will ever permanently overtake the US(assuming something doesn't destroy us) see the chinese can barely make a good jacket there is no way in hell they will be able to overtake america permanently besides the fact they have little to no natural resources(That I know about), and there is no way they could produce better military hardware then the united states their tanks would breaking down every half a mile all they have going for is numbers. This just like the scare in the 80s about Japan taking over the world.

That isn't completely true, China is the world's largest supplier of rare earth metals, which despite their name actually aren't that rare. Other than that, they are pretty dependent on foreign imports to meet their needs.

 

[Connor Lonske]

All countries do eventually, but if it does, it will be with nukes.

 

[Danny Ocean]

@Danny Ocean:
Have fun driving off the cliff. Just don't invent excuses afterwards.

Is that all you've got to say for yourself? Really? I type out that big long post explaining myself and questioning you and you don't even bother to dignify my with a response?

Don't try and hide your apparent ignorance of economics behind a veneer of arrogance. It's incredibly rude.

 

[The Funslinger]

America might collapse in the far future. As we all know no country lasts forever.

However the economy is just getting back on its feet there is no way America would collapse now.

See I see no improvement, the lower working class (My family) that was already poor, is falling straight into the need aid just to survive category.

The recession is technically "over", but things aren't fixing themselves overnight. It's like a forest fire. It may have burned itself out, but it's going to take time for the surviving seeds to sprout from the ashes. You can bet it will, though. Personally, I think it's the fault of the stores doing the "no payment necessary with no interest for three years!" and the insurance help things saying "borrowed money, but feel like screwing the loaners just because you're cheap, and didn't use the money wisely? That's fine! You don't have to pay them back!"

 

[Pontus Hashis]

What do you think? Are we going to survive or should I start speaking INDIAN/Chinese?

I think I might see a reason why you can't find a job... There's no Indian language, there's many languages in india. Read a book...

Technically there is no Chinese language either, it is a language family. What people call Chinese is really Mandarin Chinese (sometimes referred to as Standard Chinese). However, it is pretty difficult to just start speaking any language, you usually have to study it first.

True. I just noted on "indian" becus I had right befor seen a joke about Indian and nativ americans. If I had thought it trough I would have said the same thing about "chinese".

 

[hawkeye52]

Take a look at this and it will show you how much our economy has gone down compared to how much it has gone up

 

[Semi-Human]

You'll probably find a job, and that won't be the end of the US.

But unless you fix your oil addiction the US and the whole world will be in trouble. Currently without oil we can only feed about 1 bilion ppl, and it i gonna run out some where this century. Though the sheer price would probably stop consumer consumption of oil before then.

The problem with the US is that your used to low oil prices, something you won't be able to maintain for ever. If i where to covert out local prices to dollars and gallons we'd be paying 7,76 US dollar per gallon right now so stop complaining about 5 dollar. I mean take the bus or carpool.

Of course as long as the US stays on its conservative don't rock the boat campaign its gonna go down hill until its to late to avoid failure.

 

[hyker]

don't worry, this is just another time of depression, every 80 years there's an economical crysis like this, and things were WAAAAAAAAY worse in the previous two ones than this one is

I like to think that after this ends I won't be so sad if I get into a bad situation, since there can allways be worse

 

[Continuity]

Again, its not just me. How is the nation's Poverty stricken families going to get to work when they spend $5 a gallon on gas to get to work? Maybe its worse where I am, as Florida has never been all that great.

Try $7.88 for a gallon of unleaded at UK prices.

 

[Anti Nudist Cupcake]

EVERY major civilization ends at some point, there is likely NOT going to be a place called America in three thousand years from now.

RoboFrance on the other hand, totally different story.

 

[MetalGenocide]

Already has. Though it's still worth looting for a while.

I notice a disturbing amount of people who have not yet realized this.

 

[Goldeneye103X2]

Your avatar is strangely fitting for this topic.

Agree. I actually took this thread more seriously because of that.

OT: I don't live in America, so I can't exactly help, but I do have one suggestion...

Move to Canada.
Yes, it's slightly more expensive to live there, BUT, surely there must be work somewhere in there. It's the second largest country in the world, and its only got about 34 million people (to put it into perspective, Great Britain has 62 Million people. So Canada is basically near empty from this POV). If you can't find a job there, then I guess I can't help you further.

 

[Nuckelavee]

OP, your avatar is perfect for your initial post. -applaud-

 

[Gitty101]

Meh, fuel prices are roughly double that in the UK.

OT: I'm not sure what's going to happen to America, but I'm sure it will be interesting to watch