Shade tree Economics

[Firethorn]

Now, I'll fully admit to not having an advanced economics degree.

But I've heard that something like 2/3rds of the debt the government owes is owed to our own citizens.

But I was thinking, assuming the government actually, you know, did the impossible and balanced the books and started to pay off that debt, that the money would have to go somewhere.

Thus, wouldn't the money freed up to from the governemnt acting in a responsible manner be available for re-investment, thus increasing monies available for commercial investments through the roof, stimulating our economy?

By the same token, Obama borrowing money for his various 'stimulas' plans takes money OUT of the available market, only to be made available again in sub-optimal(gotta filter through a government office) and manner in the form of the various bailouts?

Wouldn't balancing the budget actually stimulate the economy in the long run?

[zahc]

Of course. If stimulating the economy was the real goal, it could be achieved by cutting taxes. Stimulating the economy is not the real goal.

In case you missed the memo, we are all socialists now.

[Perd Hapley]

Pish-tosh.  As everyone knows, all of our debt is owned by China.  Or Japan.  Or whomever seems most frightening at the moment. 

[taurusowner]

Firethorn, don't make the mistake by thinking the orchestrators of this are benevolent but misguided.  This is not simply a plan to help people that won't work.  They know it won't work.  That's not their goal.  The goal is control.  Control of lives, jobs, health, transportation, living, money, firearms, you name it.  The stimulus is about having EVERYONE indebted to the government, and thus under their control.

[makattak]

Now, I'll fully admit to not having an advanced economics degree.

But I've heard that something like 2/3rds of the debt the government owes is owed to our own citizens.

But I was thinking, assuming the government actually, you know, did the impossible and balanced the books and started to pay off that debt, that the money would have to go somewhere.

Thus, wouldn't the money freed up to from the governemnt acting in a responsible manner be available for re-investment, thus increasing monies available for commercial investments through the roof, stimulating our economy?

By the same token, Obama borrowing money for his various 'stimulas' plans takes money OUT of the available market, only to be made available again in sub-optimal(gotta filter through a government office) and manner in the form of the various bailouts?

Wouldn't balancing the budget actually stimulate the economy in the long run?

You speak like one who has a degree in economics, except you're missing the terminology.

The technical term for the phenomena you are explaining is "crowding out".

Doesn't matter whether the government taxes or borrows, it "crowds out" private spending:

Taxes are clear. Borrowing is less obvious, but you nailed it: there's only so much money for investing and if the government takes a portion of it, it's no longer available to the private sector.

[Gewehr98]

Firethorn, don't make the mistake by thinking the orchestrators of this are benevolent but misguided.  This is not simply a plan to help people that won't work.  They know it won't work.  That's not their goal.  The goal is control.  Control of lives, jobs, health, transportation, living, money, firearms, you name it.  The stimulus is about having EVERYONE indebted to the government, and thus under their control.

Jeebus. 

You're right.

It's not paranoia.  They really are out to get you.