What is the reason for our economic problems?

I think you focus too much on the fundamentals of keynesianism and comparative advantage, without adequate consideration to how these elements should properly fit within the wider government economic policy. Both keynesianism and comparative advantage can be inefficient, or even disasterous, if improperly implemented.

I happen to believe that Keynes "paradox of thrift" does not hold up to basic logic. Perhaps within a Marxist perspective, but I really do not think that was what Keynes was getting at.

 

This makes no sense. Keynesianism is a (arguably multiple) school of thought. It enables us to understand how policy can be 'properly implemented'. Comparative advantage, in contrast, is a simple reality that informs us of the consequences of differences in opportunity costs. The problem here is that you're making statements without any economics backbone behind it

 

I do not so much disagreee with the basic idea. I just disagree with the school of thought it has given rise to.

The underlying problems need to be addressed, whereas many keynesians just naively think the economy can just be "jump started" out of all its troubles. The problem is that the government is often really terrible at allocating money to the right places. And it is not such a good idea to go on a huge spending spree when you do not really have any savings to begin with.

 

I'm not interested in your opinion. You don't know enough about the multiple sub-schools within the field to make a coherent argument. The fact is that you made an error, illustrated by lumping together a school of thought and an economic concept (based on nothing more than opportunity costs)

 

1. drug war prevents resourcing, which includes hemp biomass
2. Zionist O.G. joint media
3. propaganda deflection effect
4. economic bubble with dirt on it will pop
5. corruption prevents relief, which prevents remedy
6. US/UK imperial trends have a carbon footprint, during a mass extinction

There's probably more.

 

The first thing you must understand is that the economy is not a problem for the wealthiest .01% of the population who are benefiting from the status quo.
The economy is only a problem for the working class who are losing the ability to support themselves.
The cause is simple, we no longer have a free market economy. The current economy is a fascist system in where the government and large corporate interests exploit both the countries resources and people to create a wage slave state.
Many people have the misconception that the government has the agenda to make things better for the American people when nothing could be farther from the truth.
The corporate / government fascists are modern royalty, while the working class Americans are the peasants and their welfare is of little concern to the modern ruling class.

 

Economic problems in a globalized world are global.

It's easy to say that the outsourcing of productive activities has diminished the amount of low level job opportunities in our countries.

It's also easy to say that immigration has met the demand for "poor workers", not leaving room for our own workers [even if our young boys and girls seem to refuse to do poor jobs].

To this we can add the explosion of the financial bubble, but overall the financial bubble itself: it has blocked the real economy focusing capital and activities on the so called "paper economy". Substantially this has made Western economy lose a decade [since we tent to base our economical growth on banking and financing instead of basing it on real production of goods and services].

 

90% of the wealth is in the hands of 10%, has nothing to do with taxes collected, has to do with taxes not being collected on that 90%

the number one cause is foreign outsourcing an foreign imports, it's destroying this country....

the rich are getting richer and the bottom 90% getting poorer...

.

 

So US are ready for a French Revolution ... begin studying French ...

 

good luck with that....

 

Outsourcing has nothing to do with the problems of the US. You outsource jobs all the time. Do you cut your own hair? Do you grow your own food? Do you refine your own oil? You "outsource" those jobs to other people. This is called the division of labor. It doesn't matter if it's someone across the street, across the country or across the world that produces a product you use. Borders don't matter when it comes to economics and wealth creation.

Taxation also is not the source of the problems in the US. Thinking that you can just take resources from the rich and shift them around will not solve problems. The problems of the US economy is malinvestment and inflation. both caused by the government intervening in the economy.

 

One big reason is income equality. The top 1% of Americans make 36% of the nation's wealth. The gap is widening, not shrinking. Obama is specially targeting this number, which is one of his smart policies. It's mostly Republicans who support this number too.

The decline in actual labour is another one. Back in the day, if I needed a job done I couldn't use backhoes, bulldozers, cranes, and other machinary. If I wanted a factory, I couldn't use robotics to do the job, I had to hire employees. Now to save money so that the CEO's can make more money, they fire the workers and use the machines.

The unlivable wages is another thing. 7.25$ is proven to be an unlivable wage, barely sustainable. One man tried and documented his struggle to live 30 days on minimum wage. He had to buy litterally the poorest house in the city, and work very long hours with his girlfriend to eat very low quality food, and not able to afford any at all non-nesseciaties. They couldn't even buy new shoes or clothes.

Another is outsourcing. Companies ship overseas, so they can pay people in 3rd world countries 2.50$ an hour that they'd have to pay American employees 15-40$, that way the people making billions can make even more money.

The parasites that cripple our economy is another. Wasting billions on them, hurting the dollar in the market that could be spent on better things.

 

What is the reason for our economic problems?


Who says we have economic problems?

Maybe we have too many people? Maybe we are careless spenders? Maybe government spending is out of control?

Where is it written or implied that the US economy can grow at a 'steady' rate which can offset population growth and societal demands?

How many Americans truly live within their means versus over-spending, credit spending, and entitlement spending?

How many Americans truly prepare themselves with an education and skills to maximize their potential in the economy?