No offense guys, but if we had the "real" solutions we would be active in politics, not filmmaking (unless combining the two of course). Quite often I see things being broken down in such simplistic terms, when in reality fixing these problems is complex, requires cooperation from both sides of the aisle, etc. I don't pretend to have any well prepared plans either, but I know it will take some really smart, ambitious folks to get this thing moving in the right direction again. And if the two parties continue to want to outsmart each other, and get stuck in their tunnel vision this mess could go on for quite a while. Hopefully people come to their senses sooner rather than later, because the longer this goes on, the less cooperation we see from our politicians the greater the chances for a huge collapse. I don't want to see that day.

I'm more interested in consequences of austerity measures instead of measuring economic prosperity. What are the real changes? Details... that's important.

@stonebat

The consequences of austerity are no mystery. Have a look a Ireland, Spain or Greece. Mass unemployment. Increasing public debt (yes, you read that right). Prolonged recession, or worse. The U.S. is about the only growing economy in the West at the moment, because it's the only country which didn't pursue a determined austerity program, inadequate though the Obama stimulus was.

@stonebat

Remember that it can be not horrible end, but endless horror.

@jrd

The U.S. is about the only growing economy in the West at the moment, because it's the only country which didn't pursue a determined austerity program, inadequate though the Obama stimulus was.

Difference is not because of this. It is because of dollar, big number of economic colonies and military. Remove any of this triad, and it'll fall.

As for growing, thing that you refer is GDP, remove goverment stimulus, cuts, and other parts going to GDP, make statistics independent, and it'll be other pictures.

CEOs, taxes, profits, bailout, austerity, fiscal cliff... yeah we know it. Everyone knows it :)

What's the common goal among them?

LoL. I don't believe in some conspiracy theory. But I believe things could happen by chance. Each group is acting on their own best interests, but eventually they'd discover common goals. That's when things really start changing. I'm not seeing it yet. Maybe it's too early to tell.

LoL. I don't believe in some conspiracy theory.

And the hundreds of millions these people spend lobbying politicians every year is for entertainment purposes only? Or it just happened by chance? The money blew out of their bank accounts and just happened to find the right pockets to get their favored legislation and government policy?

Sounds more like you're on sleeping pills, than weed.

@stonebat

It is not some uncertainity.
It is fundamental capitalism problem.

Look at the "wrong" countries list that suddenly must be "democratic" (tm). What are common? Not only location or resources.
But simple fact that this countries was independent, you could not bring them on their knees by just demanding debt they have.

It also clearly show current main principle in Europe - divide and conquer.
Make one idiots belive that Germany is to blame, and make Germany belive that it is in their interest to part with others. After this follows big life level drop in country thrown our of EU, it induce next round of problems in remaining countries. Go to start.

@Bueller I believe the theory is that if you don't tax them they will invest the money instead and the company will use that money to expand and employ more people

@sam_stickland

Issue that you do not look deep. Ignore mass media. Thing that you see is capitalism issue multiplied with credit issue. And used money printing never helped in such situation, but not using money printing will make things worse, and quick.
And big change involve either big war or complete change of elites (and owners, I must add).

From http://old.nationalreview.com/kudlow/kudlow200406100915.asp

"Between the late 1960s and 1980, the U.S. inflation rate rose from 2 percent to 14 percent, while the unemployment rate gradually drifted higher, from 4 percent to almost 10 percent. It was a period of decline for the country. Americans were demoralized.

As stagflation became more deeply embedded in the U.S. economy, Soviet adventurism in Central and South America, Asia, and elsewhere around the world became more pronounced. The Soviets saw the U.S. cut and run from Vietnam. Our Cold War adversary saw nothing but weakness emanating from the U.S.

Ronald Reagan changed all that. From the moment of his swearing-in in Jan¬ uary 1981, with his extraordinarily strong character and deep and abiding faith in God, Reagan acted relentlessly to revive the nation.

More than any modern president, Reagan understood the link between economic growth at home and American strength overseas. It was the Gipper’s most brilliant insight. He acted swiftly to show our enemies that we would produce the necessary economic resources to do whatever it would take, for however long was necessary, to triumph over the Communist menace.

Immediately upon assuming office, he reversed the economic policy of the decline years. He brought down marginal tax rates, restoring the incentives necessary for economic growth. He gave Federal Reserve chairman Paul Volcker the strong ground to stand on, allowing him to harden the value of the dollar and slay inflation.

At bottom, what became known as Reaganomics was a new pro-growth policy mix of tax incentives at the margin and stable money. But there was more. The Californian launched a massive military buildup totaling about $1.5 trillion. He deregulated oil prices, proving the conventional wisdom wrong as energy became much cheaper. He launched U.S.-Canadian free trade. He was unyielding in his opposition to the air-traffic controllers’ strike, firing thousands of these government workers and ending the anti-growth union stranglehold on private industry. He created individual retirement accounts and 401(k)s, giving birth to the investor class. He also slashed social spending by reducing domestic program levels (excluding Social Security and health care) by nearly $50 billion in 1981. That amount would come to about $90 billion today.

By 1986, Reagan’s tax-reform plan left two marginal rates of 28 percent and 15 percent, a long stone’s throw from the 70 percent top rate he had inherited. His plan also cut about 2,000 pages from the tax code.

Ideas matter. Results quickly followed for Reagan. Between 1982 and 1989, the economy grew, adjusting for inflation, by 35 percent: more than 4.5 percent per year. As growth was restored, tax revenues came flowing in. Income-tax revenues grew by 50 percent during this period even as tax rates dropped. By 1986, the inflation rate had fallen to 1 percent. By the end of his term, unemployment had dropped to 5.5 percent. Interest rates had plunged. The stock market had soared.

From July 1982 through the end of 1988, the S&P 500 averaged a near 21 percent annual gain. Brand-new industries arose in computing, software, communications, and the Internet — original endeavors that completely streamlined and transformed the American economy for the decades to come. In effect, Reaganomics launched a 20-year boom, the longest prosperity period in the 20th century."

So tell me again why cutting taxes isn't the way to go? Before Reagan, Carter increased taxes (very similar to what Obama wants to do) and taxes topped out at 70% and jobs started leaving this country in droves. Reagan came in and he brought those down and people invested and jobs were created AS WELL as closing loopholes and deductions/credits.. The real fix would be to reduce tax rates but make everyone pay their percentage without loopholes or tax shelters, etc. Flat tax or federal sales tax would be a good alternate.

http://online.wsj.com/article/SB10001424052702304911104576443893352153776.html http://www.cato.org/publications/commentary/why-70-tax-rates-wont-work http://www.freerepublic.com/focus/bloggers/2957581/posts?page=7 http://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/index.htm

@art

Discussinf tax policy to cure current problem is like discussing urine amount required to be consumed to cure cancer.

As for Reagan, he was puppet when guys went to final credit expansion to get more time (the end will be in early 90s if not few traitors).