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View Full Version : The Fraud Of Austerity



Mister D
05-16-2012, 12:44 PM
The chart below shows that rather than the austerity the left is whining about, government spending has risen as a share of gross domestic product (GDP) in all of the major economies. Again, the left said unemployment rates should have come down by now, but the opposite is happening. The U.S. "official" unemployment rate has come down slightly, but the percentage of the labor force at work continues to decline, so the real unemployment rate is approximately 15 percent.
The irony is that the refusal by those on the left, in both Europe and the United States, to deal with the "entitlement" problem is going to cause an involuntary austerity in which real incomes are going to fall for most people. Incomes have not been rising as fast as inflation in the United States and most places in Europe, but what has happened is only a very mild introduction to what is going to happen.


http://tbj.intersight.netdna-cdn.com/sites/brusselsjournal.com/files/spending-unemployment-rahn.png

http://www.brusselsjournal.com/node/4938

Conley
05-16-2012, 01:55 PM
I would be curious to see the peak spending levels since cuts have already for some of those nations. Now it's just a matter of too little too late I fear.

Shoot the Goose
05-16-2012, 02:13 PM
I know that we hear the cries of the liberals already "austerity has not worked" !

Like blowing money did ?

The concept of finally running out of other people's money is inconceivable to them. Look at the OWS folks here in the states. One big charade that boils down to "a right to free stuff".

Peter1469
05-16-2012, 03:34 PM
I would like to see Greek numbers on the chart. I imagine that their government spending didn't really drop either.

Conley
05-16-2012, 03:43 PM
Hard to believe we had 4.6% unemployment just five years ago. It seems like a distant memory. I wonder when, if ever we'll see unemployment that low again.

Mister D
05-16-2012, 03:44 PM
Doesn't it though? That and 7% interest on a CD.

Conley
05-16-2012, 04:10 PM
Doesn't it though? That and 7% interest on a CD.

Yes! I have often thought about those CD rates we had way back when. I would love a guaranteed 7% return these days...

Mister D
05-16-2012, 05:31 PM
Yes! I have often thought about those CD rates we had way back when. I would love a guaranteed 7% return these days...

It hurt not earning a dime of interest on my home savings. It wasn't a huge amount of money but $20K sitting in a top tier savings account for a short term CD could have earned me a few bucks at least. When I bought my house I may as well have stuffed the money under my mattress.

Peter1469
05-16-2012, 06:12 PM
How is the value of your house holding up?

Mister D
05-16-2012, 06:16 PM
How is the value of your house holding up?

Not sure, actually. I got this place on the cheap (relatively speaking-this is NJ after all) but I haven't had it assessed(?). I've gutted the bathroom and kitchen and completely remodeled so I'd imagine that helps.

Peter1469
05-16-2012, 07:32 PM
Did you have to get it appraised when you took out the mortgage?

You can look on Zillow dot com for comparables.

Mister D
05-16-2012, 07:51 PM
Did you have to get it appraised when you took out the mortgage?

You can look on Zillow dot com for comparables.

Appraised! That's the word. Yes, I actually forgot what the figure was but it went on the market for close to 375 or something like that. The lady was way too optimistic considering the shape of the housing market. No bites so it gradually came down. She lived in NYC and was moving to CT. so she just wanted to get rid of it. There was a family here renting for a while but when they left she was just paying taxes on the property. I picked it up for 250K minus the repairs my inspector said were needed. The town did their own inspection though and it cost the owner another 20K. I kind of felt bad. :undecided:

Mister D
05-16-2012, 07:53 PM
I should get it appraised again at the end of this year. I've renovated the bathroom and kitchen. The basement is next.

Peter1469
05-16-2012, 08:30 PM
There is no need for you to get it appraised unless you want to sell or rent it. It would be a waste of money otherwise.

Conley
05-16-2012, 08:32 PM
There is no need for you to get it appraised unless you want to sell or rent it. It would be a waste of money otherwise.

Not necessarily, you can save a lot in property taxes if there's been a substantial devaluation.

If D actually has improved it though then I'd advise against it! :grin:

Mister D
05-16-2012, 08:35 PM
There is no need for you to get it appraised unless you want to sell or rent it. It would be a waste of money otherwise.

Does it cost a lot? I was just curious to see how my renovations have affected the resale value. Then again, I'm not going anywhere for a long while. In fact, if the town remains what it is now they may even bury me here.

Mister D
05-16-2012, 08:35 PM
Not necessarily, you can save a lot in property taxes if there's been a substantial devaluation.

If D actually has improved it though then I'd advise against it! :grin:

Oh shit that would suck.

Mister D
05-16-2012, 08:36 PM
I'm supposed to have permits for that too but fuck that. It holds up the work.

Conley
05-16-2012, 08:36 PM
Does it cost a lot? I was just curious to see how my renovations have affected the resale value. Then again, I'm not going anywhere for a long while. In fact, if the town remains what it is now they may even bury me here.

No, they are cheap, but you obviously don't want higher taxes. I haven't heard of appraisals leading to higher taxes but I suppose it's possible. Mostly I've heard of them to get lower property taxes due to the general drop in RE values.

Conley
05-16-2012, 08:38 PM
I'm supposed to have permits for that too but fuck that. It holds up the work.

Permits may actually increase the resale value if you have a buyer who's a stickler for that stuff, but I wouldn't sweat it. Plus being NJ it's probably assumed most work is done by [comment deleted for being insensitive to Italian-Americans :grin:]

Mister D
05-16-2012, 08:42 PM
Permits may actually increase the resale value if you have a buyer who's a stickler for that stuff, but I wouldn't sweat it. Plus being NJ it's probably assumed most work is done by [comment deleted for being insensitive to Italian-Americans :grin:]

:laugh:

Peter1469
05-16-2012, 08:43 PM
Yes, if you think that the county is over taxing you an appraisal may help get taxes lowered. Other than that, I would not do it unless you want to rent or sell.

Mister D
05-16-2012, 08:44 PM
No, they are cheap, but you obviously don't want higher taxes. I haven't heard of appraisals leading to higher taxes but I suppose it's possible. Mostly I've heard of them to get lower property taxes due to the general drop in RE values.

This is a cape cod and my taxes are $5600. It's not a small property but it isn't by any means a large house. In PA, you'd have to have a lot more property to be paying anywhere near that. My brother pays around 800 bucks near Baton Rouge.

Mister D
05-16-2012, 08:45 PM
Yes, if you think that the county is over taxing you an appraisal may help get taxes lowered. Other than that, I would not do it unless you want to rent or sell.

Thanks. I will probably won't bother then.

a777pilot
05-19-2012, 12:30 PM
The chart below shows that rather than the austerity the left is whining about, government spending has risen as a share of gross domestic product (GDP) in all of the major economies. Again, the left said unemployment rates should have come down by now, but the opposite is happening. The U.S. "official" unemployment rate has come down slightly, but the percentage of the labor force at work continues to decline, so the real unemployment rate is approximately 15 percent.
The irony is that the refusal by those on the left, in both Europe and the United States, to deal with the "entitlement" problem is going to cause an involuntary austerity in which real incomes are going to fall for most people. Incomes have not been rising as fast as inflation in the United States and most places in Europe, but what has happened is only a very mild introduction to what is going to happen.


http://tbj.intersight.netdna-cdn.com/sites/brusselsjournal.com/files/spending-unemployment-rahn.png

http://www.brusselsjournal.com/node/4938


Milton Friedman would agree with your post.