So, what is it you're saying here?

Ok, here is the quote

And an April 2000 study by Harvard economist Benjamin Friedman for the National Bureau of Economic Research said Commerce Department data showed that, contrary to popular belief, the Reagan deficit did not lead to an investment boom -- all rates of domestic investment actually slowed down in the 1980s.

"The familiar conclusion that sustained government deficits at full employment depress private capital formation has stood up well," Friedman wrote.

And this is being used to support a claim that the econ policies of the late 80s had nothing to do with the boom in the 90s.

The only indicator mentioned is >private< capital formation on a domestic basis. It ignores the HUGE impact that the credit facility put in place invited unprecedented foreign investment in the US. During that time, all major asian auto manufacturers build facilities in the US, it ignores the influx of billions in foreign real estate investment etc.

It also ignores, and I can't imagine it being anything but purposefully, PUBLIC capital formation, which is what deficit government spending gives you. More guns, more government jobs, more infrastructure etc.

Was the prosperity the direct result of one act of cutting taxes? Absolutely not. Did Al Gore have something to do with it by helping fund tech? Sure...him and everyone who made sure it passed. Did the massive gov't spending programs make sure it happened. You bet.

Does any of that have anything at all to do with private capital formation. No.

Post #294,252 by CRConrad 10/5/07 7:58:11 AM Reply	So, what is it you're saying here? That President Reagan personally invented globalization and thereby ushered in an era of prosperity? And if that's not what you're saying, then what does (whatever it is you are saying about) globalization have to do with Seamus' point, namely (to remind you) that the American economic prosperity of the nineties was not necessarily Reagan's personal doing? [link\|mailto:MyUserId@MyISP.CountryCode\|Christian R. Conrad] (I live in Finland, and my e-mail in-box is at the Saunalahti company.) Ah, the Germans: Masters of Convoluted Simplification. — [link\|http://www.thetruthaboutcars.com/?p=1603\|Jehovah]
Post #294,270 by bepatient 10/5/07 9:59:06 AM Reply	Re: So, what is it you're saying here? Ok, here is the quote And an April 2000 study by Harvard economist Benjamin Friedman for the National Bureau of Economic Research said Commerce Department data showed that, contrary to popular belief, the Reagan deficit did not lead to an investment boom -- all rates of domestic investment actually slowed down in the 1980s. "The familiar conclusion that sustained government deficits at full employment depress private capital formation has stood up well," Friedman wrote. And this is being used to support a claim that the econ policies of the late 80s had nothing to do with the boom in the 90s. The only indicator mentioned is >private< capital formation on a domestic basis. It ignores the HUGE impact that the credit facility put in place invited unprecedented foreign investment in the US. During that time, all major asian auto manufacturers build facilities in the US, it ignores the influx of billions in foreign real estate investment etc. It also ignores, and I can't imagine it being anything but purposefully, PUBLIC capital formation, which is what deficit government spending gives you. More guns, more government jobs, more infrastructure etc. Was the prosperity the direct result of one act of cutting taxes? Absolutely not. Did Al Gore have something to do with it by helping fund tech? Sure...him and everyone who made sure it passed. Did the massive gov't spending programs make sure it happened. You bet. Does any of that have anything at all to do with private capital formation. No. Too much of today's music is fashionable crap dressed as artistry._{Adrian Belew}
Post #294,274 by Seamus 10/5/07 10:40:47 AM Reply	The claim was that the Reagan deficits produced the dot com era. That is what I was refuting. Before you decide what the author ignores and what he is claiming you should read the [link\|http://www1.worldbank.org/wbiep/fiscalpolicy/friedman.pdf\|whole paper] Seamus

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