Trains, Banks and Public/Private Ownership - Prev.Predict UK Gen.Election Result

[Admiral Yi]

With interest rates this low, there's no real reason to pay down debt.

Investing in things that are good for the economy - education, health, infrastructure, etc seems pretty economically prudent at at time like this.

You're thinking it would be much better to wait until interest rates rise, growth slows, and unemployment rises before reducing the debt?

[dps]

With interest rates this low, there's no real reason to pay down debt.

Investing in things that are good for the economy - education, health, infrastructure, etc seems pretty economically prudent at at time like this.

You're thinking it would be much better to wait until interest rates rise, growth slows, and unemployment rises before reducing the debt?

We had this discussion before.  There's always some reason it's not time to balance the budget and pay down the debt.  (I don't want to wrongly accuse Jacob of doing this;  I don't recall the specifics, so it might well have been different people raising different objections based on different scenarios, and Jacob may not have even posted in that thread, but somebody always had a reason that it wasn't a good time.)

[mongers]

Three people have voted since the results started coming in, no wonder the Tory minority government choice is surprisingly popular. 

[Ed Anger]

Huh.

[Valmy]

No we didn't.  The Clinton administration claimed to have balanced the budget, but that was done by declaring Social Security spending "off-budget", which was bullshit.

I am well aware it was bullshit. But the Republicans went ahead and acted like we had a big surplus anyway, which makes it more damning not less. And all the progress that had been made was swept away.

[Valmy]

Three people have voted since the results started coming in, no wonder the Tory minority government choice is surprisingly popular. 

I still haven't voted since 'total disaster' was not an option

[CountDeMoney]

We had this discussion before.  There's always some reason it's not time to balance the budget and pay down the debt.

It's a long-term problem that will require a long-term solution.  Short-term panicking is not the answer.

Funny how people refuse to address climate change because they can't wrap their heads around such a long-term concept, but the national debt always has to be dealt with nownownownow, like it's the cable bill.

[Valmy]

Somehow I don't think Trump's budget is the first step in this longterm process

I guess will be waiting until next week to see if this DUP-Tory government is going to be a thing?

[Ed Anger]

I support Lord Buckethead.

[CountDeMoney]

Somehow I don't think Trump's budget is the first step in this longterm process

It's not even been 6 months.  So it still doesn't count yet.

I guess will be waiting until next week to see if this DUP-Tory government is going to be a thing?

Got my own problems.  Let know what happens.

[dps]

Somehow I don't think Trump's budget is the first step in this longterm process

No, regardless of our views on budgetary matters, I don't think any of us expect anything Trump might do to be the first step in a long-term, positive plan.

[Eddie Teach]

Three people have voted since the results started coming in, no wonder the Tory minority government choice is surprisingly popular. 

Make that four. 

[Jacob]

I just voted "minority conservative government" just now

[Jacob]

With interest rates this low, there's no real reason to pay down debt.

Investing in things that are good for the economy - education, health, infrastructure, etc seems pretty economically prudent at at time like this.

You're thinking it would be much better to wait until interest rates rise, growth slows, and unemployment rises before reducing the debt?

I was talking about interest rates. If they rise significantly, that will tend to lower the debt via inflation given the government's advantageous position.

The debt should be paid down during good times - so a growing economy and low unemployment would tend to indicate paying down debt.

That said, I don't have a serious objection to the US gov't paying down debt now if these are "good times". I recommend raising taxes to do so and continuing to invest in future growth and the population via health care, poverty reduction, education, proper regulatory regimes, and infrastructure.

I mean, I know you won't agree with that but I don't think you'll be surprised by my position either

[Richard Hakluyt]

I think that an ageing population will make it very difficult to pay down debt. Apart from anything else the elderly own a lot of that debt in the form of bonds and stocks; their comfortable retirement requires that the debt exists. I also think that the desire by the elderly to lend money exerts pressure to keep interest rates low. I suppose that a lot of this money could be invested in 3rd world countries very profitably; but the risks are distasteful to the retired.