US – five years into its 20 year lost decade

The Japanese have had a twenty year lost decade following their own Keynesian stimulus. This is America reported at Drudge today:

92,009,000 Americans Not Working…
Labor Force at 36-Year Low…
7 Million Have Left Under Obama…
Lethargic economy…

And we could end up with the same kind of outcome if we don’t get on top of our debt and reduce unproductive spending. Decline is slow, and not everyone becomes poor, but in the end as a nation, we are less well off and the way out becomes more difficult every year. If the Labor Party is merely ignorant about what’s in store if we don’t fix the deficit, then it’s par for the course. But if they do understand but are still standing in the way of change, then they are despicable.

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49 Responses to US – five years into its 20 year lost decade

  1. johno

    Dumb or despicable?

    Tough call!

  2. Somerville

    Labor-Green. Despicable, loathsome……shameless.

  3. Ant

    Despicable. Every. Damn. Time.

  4. Andrew

    Bugger the ALP, what about the corrupt Treasury officials who had ONE job?? When the Goose forecasts 12% nominal revenue growth, to gag him. To NOT support the fraudulent forecasts of surplus that are “guaranteed.”

  5. ar

    They were already despicable. Australia Day Race Riot anyone?

  6. ar, get ready for more – the Left has found our faultline. Race.

  7. Grigory M

    Steve – it’s not a matter of them understanding or misunderstanding the economic circumstances that the Government has produced it’s Budget for. The problem is that Labor (and the Greens) want the current Government to fail, and as soon as possible. Given the state of the polls since last year’s Election, IMO they see themselves possibly returning quite soon to the Treasury benches – and, if the opportunity arises, will attempt to use a denial of Supply to get there.

    Forget about the Parties’ “agreement” not to do so following the 1975 events, Labor are very openly saying that they will vote down most of this Budget. It’s all about “being in Government” for any of the Parties – that why Abbott, somewhat desperately when the voters were having pre-election second thoughts last year, promised not to change just about anything.

    S0, getting back in is the main game – addressing the economic realities is secondary. You can bet that Labor’s friends in, not just Treasury and Finance, but in all of the Commonwealth departments and most of the State departments will welcome them back with open arms – and will agree wholeheartedly that there will be no difficult decisions made or foreshadowed to threaten their incumbency before the following Election is faced.

  8. Mk50 of Brisbane, Henchman to the VRWC

    it is impossible to be so stupid as to not know.

    Look at their policies. It’s deliberate, they know,and theya re beyond despicable.

  9. frederic

    uhh Labor and the Greens aren’t in power, the Coalition are ramping up taxes and spending

  10. Allan

    Grigory M – spot on.

    You also failed to mention the involvement of the leftoids in the media who are just as complicit.

    I also worry about the commonsense of the voters – their ability to read through the distortions of Labor and the Greens, the biases of the media and their ability to see that minor sacrifices now will save huge adjustments later. Or does “I’m all right Jack” and “don’t ask me to be involved in halting the upcoming train wreck” (what problems?) rule?

    Ironically the ones who will suffer most if we do not start to do something ASAP are those less able to help themselves and those who are young now ( not all are marching up and down the streets complaining) who will have to shoulder the burden over the next 20 years (or more).

    To quote someone “If you are not part of the solution, you are part of the problem.”

  11. Makka

    “it is impossible to be so stupid as to not know.”

    That should be directed at the electorate. But, it is of course possible to be that stupid or determinedly uninformed.

    The reason why we are in this shit of a mess is because the Australian electorate is so economically brain dead they cannot see or understand the implications of national and growing Debt to the horizon or the despicable traitorous Socialists who advocate it. Yes, they voted out the most incompetent bunch of losers in our history but not by such a great margin as they should have. When faced with a dose of Budget reality , the electorate turns into a bunch of weepy girls and embraces the very same cabal of despicable corrupt traitors who drove us into the toilet , again.

    The electorate gets what it deserves.

  12. MemoryVault

    It’s all about “being in Government” for any of the Parties

    And therein lies the truth and the heart of the matter.

  13. Roger

    It’s all about “being in Government” for any of the Parties
    As Parties, yes – after all, what political party wants to remain in permanent opposition?It was only the Labor Party in the Menzies years that valued purity of ideology over power. But I’m still prepared to believe that some individuals go into politics to work for the common good.

    On another matter, re that figure of 92 000 000 Americans over the age of 16 not working, does that figure must include Social Security funded retirees, people on disability insurance and the independently wealthy? If so, take them out and what does the figure look like, Steve? Not as healthy as it should be, no doubt, but not as bad either. Be that as it may, to what extent is US unemployment the result of the GFC, in turn the result of the property bubble which was itself largely the result of central bank stimulation of the economy in the wake of the .com collapse? Will they ever learn?

  14. Alfonso

    “the Coalition are ramping up taxes and spending”….and restricting liberty.

    Indeed, Tone is an ABC dhimmi, CAGW believing, S18C supporting big govt welfare statist…..but he stopped the illegals
    The Liberts won’t vote for tax increases or less liberty….but don’t give a rats about the numbers or cultural hardwiring of immigrants and believe the survival of Western culture is about as important as helmet laws.
    And Labor Green is the natural party of govt until there’s no way to fund the cheques in the mail and its assumption Australia exists primarily for the benefit of mendicants is rejected by Kylie and Shane.

    The only question is how I make max money out of the decline.
    (Luv the zero interest Euro, stand by for the zero interest USD, luv the smell of panic in the morning.)

  15. stackja

    USA Left want USA economy to get worse. Meanwhile MSM love Obama campaign continues.
    ALP/Greens want Australian economy to get worse. Meanwhile MSM hate TA campaign continues.

  16. dover_beach

    I was just looking at those headlines a few hours earlier and wondering if I should cut and paste them to the Cat. They are truly breathtaking. A little earlier I was listening to Levin playing Reagan’s Farewell speech.

  17. Rob MW

    Steve – In winning friends and votes, Robin Hood really started something.

  18. struth

    I really am in two minds on the Australian electorate.
    Is it ignorant politically, and lazy, or does it get it?
    I believe that considering what we are up against, to have a coalition government in power at all is a minor miracle.
    I think we can all agree that our education system is at the heart of all our problems. It has been hijacked by the left for years.
    To get people still objectively looking at politics from a right perspective, and voting liberal, after the indoctrination and brainwashing that goes on in education , the type that gives us our left wing media for example, indeed gives me hope.
    Having barriers to an “interested and educated vote” in our way like compulsory voting and still having a liberal government, gives me hope.
    The fact that this government is being given a hard time for being too left wing is also heartening.
    Abbott is a disgrace for not realising what the silent majority want, and what it voted for, wetting himself over fear of what is truly just a noisy minority.
    The reason Liberals are doing so bad in the polls at the moment is not, I believe, because the majority want labor back.
    It’s because they seem to be getting (a watered down) labor back.

  19. Robert Blair

    Makka:

    That should be directed at the electorate

    Shall we do a thought experiment? Well, actually, a bullshit made-up demographic survey.

    But anyway, here goes:

    Imagine you poll a large proportion of voters, and collect the country of origin for each voter, and that voters parents.
    Also you collect their last Federal vote, and intention at next Federal election.

    Now, back at the office you pull out just those who were born in, or had at least one parent born in, “statist” countries (assume we can easily agree on which countries that means, but I’m looking at pretty much all the non-Anglosphere countries).

    How heavily leftist will be their voting? And what proportion of the electorate do they represent?
    Would Australia be more libertarian, or more conservative without their vote?

  20. Every dog has its day

    The do-nothing strategy forecast debt-to-GDP to hit about 20%. Hardly doom and gloom. The problem isnt just the ALP/Greens. The problem is that the average Joe-6-pack doesnt believe that there is a crisis. She’ll be right mate. I doubt that the average Liberal MP believes that there is a crisis. Actually, I doubt that Abbott believes that there is a crisis. If he did, he would be doing something about it.

  21. egg_

    S0, getting back in is the main game – addressing the economic realities is secondary. You can bet that Labor’s friends in, not just Treasury and Finance, but in all of the Commonwealth departments and most of the State departments will welcome them back with open arms – and will agree wholeheartedly that there will be no difficult decisions made or foreshadowed to threaten their incumbency before the following Election is faced.

    Hence “Accord” style reform is only possible under the Scandinavian Big Govt Big Union model of Hawke-Keating?

  22. frederic

    <blockquoteThe only question is how I make max money out of the decline.

    well what do you think?
    No doubt property will be cheap but (real) capital gains and getting in tenants will be dubious…

  23. laugh out loud

    More bullshit Steve. Get over it. I recall Abbott opposed measures to reduce the budget including a threshold on private health rebate, the rort of car leasing etc etc. LNP despicable then? Thought not.

  24. Dr.Sir Fred Lenin

    We are now in the 21st centuryas you are all awawre,medicine,engineering true science (not gerbil worming ?BS! Commerce and constrction are all in the 21 st century with us,
    For a truly 21 st century society the sluggish rorts that are politics,unions and the law trade are still in the 19 th century,they are Dinosaurs,it is time they were dragged ,kicking and screaming into the present century really politicians are mostly superflous to needs,the PS runs the country ,every vpcountry,
    The king rules the PS make the kingdom work,the communist revolutionaries kill the King and take over,the PS keep things going the reds are thrown out ,”democrats take over things go on under the PS.The “democrats ” lose the election and “socialists take oner the PS keeps things going as usual .if all politicians disappeared tomorrow the PS would still keep things going,that is how important these grubby little power hungry people are ,give them one term in parliament then out for life ,and abolish any political and union funding,surely such Idealists would wok for free?

  25. Fisky

    Just wanted to know if there are any trolls who want to argue Obama’s record is better than Reagan’s. Anyone?

  26. Fisky

    Does anyone know of any examples where keeping taxes high and increasing spending led to higher growth? Keynesians are always trying to say that this is true, but if you look at the counter-cyclical pro growth (and yet high tax and regulation) policies that were running in the EU through the 2000′s (where standard keynesian analysis would predict overheating), growth barely registered a pulse.

    The ONLY way to grow is through supply-side policies, and that requires lower taxes and regulation. Keynesian big-spending NEVER increases growth beyond maybe a couple of quarters where there is the initial spike in consumer spending, and a higher interest bill following that.

  27. egg_

    Dr.Sir Fred Lenin
    #1337268, posted on June 7, 2014 at 3:08 pm

    Methinks dim-witted Staples was captive of Sir Humphrey.

  28. Fisky

    92,009,000 Americans Not Working…
    Labor Force at 36-Year Low…
    7 Million Have Left Under Obama…
    Lethargic economy…

    Add the chaos in Eastern Europe, the catastrophic Syria walkback and the Taliban prisoner swap. He’s just a rubbish President, really embarrassing. You could take your pick of Larvatus Prodeo bloggers or MIT freshmen under Noam Chomsky and they’d do an equally competent job to this clown.

    Hey Tillman, how’s your amazing President doing? He’s really killing it out there, right!

  29. MartinG

    Every dog has its day
    #1337219, posted on June 7, 2014 at 2:04 pm

    The do-nothing strategy forecast debt-to-GDP to hit about 20%. Hardly doom and gloom. The problem isnt just the ALP/Greens. The problem is that the average Joe-6-pack doesnt believe that there is a crisis. She’ll be right mate. I doubt that the average Liberal MP believes that there is a crisis. Actually, I doubt that Abbott believes that there is a crisis. If he did, he would be doing something about it.

    He is doing something about it. He’s taxing the crap out of us.

  30. Yobbo

    To get people still objectively looking at politics from a right perspective, and voting liberal

    because “voting liberal” is the only correct perspective.

  31. Yobbo

    Remember guys, no matter how shit they become, how much money they can waste, and despite the presence of a truly classical liberal party in Australia, don’t ever vote for anyone except the liberals!

  32. JC

    I hope you’re kidding, Yobbo. I almost despise them as much as the Liars Party. In fact in some ways I despise them more because unlike the Liars they know they’re sinners.

  33. JC

    I want to add that I won’t vote for them and will walk away from the ballot if the LDP isn’t there. But the Liars party are worse – much worse. So how can one reconcile this problem?

  34. thefrollickingmole

    JC
    Both parties are the Thelma and Louise types.

    Running at the cliff edge waiting for one or the other to scream stop, but not wanting it to be them.

    Only difference is Libs will do it in 2nd gear while lab will be pedal to the metal.

    Meanwhile the greens are asleep in the back having beautiful dreams they are already at the bottom of the cliff.

  35. JC

    Mole

    I think the ultimate solution is a breakaway rump out of the Liberal party that reflects Classic liberal ideas. That’s where the possibility lies. It could be done because there are a decent number of libs who support Classic liberalism.

  36. Viva

    The Left simply can’t get worked up about money/debt/spending per se. They just want to dream the dream unfettered by the bean counters.

    Inequality is their bete noir not debt – and they think you fix inequality by spreading around the dough.

    They can’t admit the budget is a problem because that would mean admitting they are to blame for something – and in addition to that IMO they just don’t feel guilty because their spending aspirations were for education and the disabled. They also think Something Will Turn Up eventually to fix the debt – another mining boom perhaps or another tax opportunity.

    Their predisposition to think a certain way and their political advantage thus happily coincide.

  37. MemoryVault

    Does anyone know of any examples where keeping taxes high and increasing spending led to higher growth?

    Of course!
    Australia.
    High taxes and increased spending have grown our debt spectacularly.

    It could be done because there are a decent number of libs who support Classic liberalism.

    Names?

  38. sabrina

    ……..but in the end as a nation, we are less well off and the way out becomes more difficult every year

    Very well articulated Steve. I hope the two stupid arm-chair critics stop their diversionary tactic and allow the government to do what they embarked on doing in the budget – at least to some extent.

    About the thread, over the years most major hotels in the USA have increased the gratuity that they now charge 18-20% as a standard. In addition on the receipt, they keep space for additional gratuity. I usually round the total after gratuity up to the nearest multiple of 5.

    Last week, I asked two different room delivery persons as to how much they receive of the standard gratuity. The common answer was that the standard 18% was shared by all working during the shift, including those working in the kitchen, while the additional $ goes to the person who delivers.
    Apparently, there is a large underclass relying more on the tips in the face of rising costs and reduced employment opportunities in the major cities. On the other hand, in some states such as the North Dakota, they have almost 15000 mining and process engineering positions unfilled . They cannot attract skilled personnel because of vagaries of weather there.

  39. sdfc

    Just wanted to know if there are any trolls who want to argue Obama’s record is better than Reagan’s.

    Ronnie’s deficits weren’t quite as big but then again he didn’t have to contend with the GFC.

  40. Fisky

    Ronnie’s deficits weren’t quite as big but then again he didn’t have to contend with the GFC.

    He had to contend with appalling high-cost growth and very high inflation. Obama never had to worry about that.

  41. JC

    Ronnie’s deficits weren’t quite as big but then again he didn’t have to contend with the GFC.

    Are you comatose? The US economy was fucked by 1980. It was on its last legs like it appears now under the Muslim Kenyan.

  42. Makka

    “They cannot attract skilled personnel because of vagaries of weather there.”

    But the Kenyan is going to fix the weather.

  43. Paul

    They were already despicable. Australia Day Race Riot anyone?

    Not a crime if done by “vibrant diversity”.

  44. Max

    Inequality is their bete noir not debt – and they think you fix inequality by spreading around the dough.

    The Welfare state increases and entrenches inequality.

    In a simple completely free economy were German immigrants make hi-tech, hi value pianos and African immigrants make low-value drums. Over time the Germans will hire the African workers cheaply and start teaching them how to make pianos, society will get more high value goods and more productive citizens with better skills. This is exactly what Henry Ford did.

    If you tax the piano industry and make transfers to the drum workers all you get is less hi-tech piano industry and more low-tech drum industry.

  45. struth

    I think you knew what I meant yobbo.
    I am not happy with the liberal party and the LDP is as yet , well, sus……………..
    I was just making the point that people still voted more to the right than left, and what really is their choice if not liberal, in Australia? I HAVE to vote liberal until a better option is available.

  46. .

    No struth, you’re a socialist enabler.

    There is nothing suspect about freedom.

    If taxes were significantly cut and the budget balanced, there would only be a limited amount of damage the government could do to the economy and society.

    If you don’t like freedom, keep voting LNP. I held my tongue but after this budget, there is no excuse to defend them anymore.

    The choice is yours.

    http://www.ldp.org.au/index.php/get-involved/join

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