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post #74 of (permalink) Old 08-05-2011, 12:15 AM
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Originally Posted by CheeseForSteeze View Post
Yes, but Japan also has a very high savings rate. Their mentality about borrowing money is different. Do you see a culture of savings in the United States? Look how many things you can finance.

Interest rates don't guarantee "inflation" because that would insinuate a specific threshold of monetary growth upon which the state of inflation would depend. It increases inflation. Any monetary growth more than 0 is, by definition, inflation. What low interest rates guarantee, through the function of central fractional reserve banking, higher inflation than without low interest rates.

The reason leaving interest rates to be determined by the market is critical is because monetary growth would control itself. Low interest rates would generate a lower demand for capital investment, driving rates up until more capital was created, driving rates down.
You said previously that higher interest rates solely "WILL" cause inflation. Now that I've pointed out Japan as an example that contradicts you, you have to bring in culture as another factor. While I agree our culture is different from theirs, my point is that higher interest rates doesn't NECESSARILY increase inflation.

Originally Posted by CheeseForSteeze View Post
Yes, and the best deal will come with a price the offshoring of jobs because of the greater competitive production environment available elsewhere. That's like arguing that reproducing can't be blamed on humans because it's human nature to reproduce.

Buying domestic obviously comes with a higher cost, but it's a cost that buys something some people are willing to pay. I bought my snowboards from companies that make them in America (with the exception of Capita). I pay more money, obviously, but that extra cost pays for something that I want to buy.

So yes, the blame does rest with the consumer. Either they are too ignorant to understand or do not care. If demand for US made products came in to vogue, do you think more companies would offer American made products and aggressive market this aspect of these products?
Buying domestic doesn't have to come with a higher cost if imported stuff is made more expensive. Thus if imported stuff is made more expensive, more consumers will naturally generally buy the cheaper domestic wares.

Originally Posted by CheeseForSteeze View Post
What do tariffs do? They intend to protect domestic producers by making imported wares more expensive, artificially. It stands to reason that the domestic products cannot be made as efficiently, because if they could be, they would be priced as cheap and the need for the tariff wouldn't exist. But this means to buy a ware of a certain type, now the consumer must pay more because they will either have to buy the import with the tariff or the inefficiently made domestic product. This means there are funds that aren't available to spend on other wares from domestic producers of wares in a different trade.

What tariffs do, unintentionally, is protect domestic producers at the expense of other domestic producers.
So I've heard that by the book argument before during my economic courses during college. Lets factor in generous subsidies from foreign governments. Look at our history for proof. Tariffs have helped American manufacturing grow ever since the founding of the nation. Are you saying the rise of America to a world power through domestic manufacturing at the end of the 19th century (in such a short time) would have been possible without tariffs?

Originally Posted by CheeseForSteeze View Post
Yes, but the leaders are chosen and held accountable to the people. It is the duty of the people to make sure the leaders of the country do what is right. I'm not sure what this has to do with the point you're making above, either.
Its kind of hard for people to be exercising it with their best judgement when they are continuously fed a bunch of misinformation through FOX and other extremely nutty outlets. FOX even won the right in court to broadcast misinformation without punishment because it was judged to be free speech.

Originally Posted by CheeseForSteeze View Post
This is erroneous. You don't have to be a Democrat to support that. I voluntarily give money through my local charities, I volunteered time in college and today to organizations like Russell House (a local battered woman's shelter), Habitat for Humanity and I volunteer on the holidays at local places (I did Bea Gatty last year, and TBH, it could have been better organized). I am unaffiliated with any party.
I didn't say you have to be a Democrat to support it, that's just one of the reasons why I choose to be a Democrat. But I sure as heck know Democrats overall are much more willing to support it than the current GOP, the extremist Tea Party, and right leaning independents. Mandating certain government programs to help the disenfranchised is a lot better than just letting the disenfranchised depend solely on the charity of the common citizen because (no disrespect to the charitable work you've done) the generosity of citizens is not alike and if a citizen just decides right then and there not to do any charitable work, the disenfranchised got nothing if there is no government programs. Again, one of the reasons why I'm a Democrat.
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