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DOGE's government cuts may hurt business, companies warn investors

washingtonpost.com

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Re: DOGE's government cuts may hurt business, companies warn investors

#31

Post by ty6853 »

techpineapple wrote: post #30
throway456aef wrote: post #18

Crash the economy on the backs of a majority of workers (federal workers are large portion democrats) who didn't vote for you so interests rates / inflation goes down.

I’d be curious to see a breakdown, aren’t a lot of federal jobs in red states? Besides I’m more interested in the second order impacts, what happens when those people stop spending in their communities?

Government employees draw their money from taxes, inflation, or debt that's paid by one of the two. Stop spending is a bit of a myth, it reverts the spending to whatever productive entity in the economy it was taken from.

Re: DOGE's government cuts may hurt business, companies warn investors

#32

Post by throw678937 »

tormeh wrote: post #24
belorn wrote: post #21

I thought the old teaching said that during a recession when governments want to save money, the best strategy is to increase spending in order to increase the circulation of money and stimulate the economy, and when there is a economic boom and governments can afford to increase spending, they should do the opposite in order to save money for when a recession occur. This was the somewhat paradoxical strategy that I…

This is Keybesian counter-cyclic policy. It makes sense but is hard to do in practical politics.

[dead]

Re: DOGE's government cuts may hurt business, companies warn investors

#33

Post by Karellen »

> At a Morgan Stanley conference this month, Brian Robins, finance chief for San Francisco-based software maker GitLab, said GitLab is aligned with the goals of DOGE, because the company’s software tools aim to help people do more with less.

> “What the Department of Government Efficiency is trying to do is what GitLab does,” Robins said.

...well, fuck

Re: DOGE's government cuts may hurt business, companies warn investors

#35

Post by throway456aef »

ty6853 wrote: post #31
techpineapple wrote: post #30

Earlier quoted context omitted.

I’d be curious to see a breakdown, aren’t a lot of federal jobs in red states? Besides I’m more interested in the second order impacts, what happens when those people stop spending in their communities?

Government employees draw their money from taxes, inflation, or debt that's paid by one of the two. Stop spending is a bit of a myth, it reverts the spending to whatever productive entity in the economy it was taken from.

Huh? If you or anyone loses a job and can not find another for a few months to many there's no doubt they won't be contributing to the economy.

Re: DOGE's government cuts may hurt business, companies warn investors

#36

Post by ty6853 »

throway456aef wrote: post #35
ty6853 wrote: post #31

Earlier quoted context omitted.

Government employees draw their money from taxes, inflation, or debt that's paid by one of the two. Stop spending is a bit of a myth, it reverts the spending to whatever productive entity in the economy it was taken from.

Huh? If you or anyone loses a job and can not find another for a few months to many there's no doubt they won't be contributing to the economy.

Government employees are funded by taxing or inflating away wealth from the productive economy. That wealth doesn't evaporate when the government employee is fired, it is instead reverts back for spending to the entities from which it came. It's in another person's pocket who themselves can fuel the local economy, not gone.

Re: DOGE's government cuts may hurt business, companies warn investors

#37

Post by throway456aef »

ty6853 wrote: post #36
throway456aef wrote: post #35

Earlier quoted context omitted.

Huh? If you or anyone loses a job and can not find another for a few months to many there's no doubt they won't be contributing to the economy.

Government employees are funded by taxing or inflating away wealth from the productive economy. That wealth doesn't evaporate when the government employee is fired, it is instead reverts back for spending to the entities from which it came. It's in another person's pocket who themselves can fuel the local economy, not gone.

lol in ur example your saying one person out of two contributing to the economy makes the economy stronger... say what. The govt employee can no longer contribute as their job moved into the commercial sector. Which now a 2nd individual is benefiting / contributing while the former govt employee can not pay they're bills, mortgage, put any money into the economy and etc , etc.

Simple math ...Both ppl in ur example contributing to the economy makes for a strong economy.

Re: DOGE's government cuts may hurt business, companies warn investors

#38

Post by ty6853 »

throway456aef wrote: post #37
ty6853 wrote: post #36

Earlier quoted context omitted.

Government employees are funded by taxing or inflating away wealth from the productive economy. That wealth doesn't evaporate when the government employee is fired, it is instead reverts back for spending to the entities from which it came. It's in another person's pocket who themselves can fuel the local economy, not gone.

lol in ur example your saying one person out of two contributing to the economy makes the economy stronger... say what. The govt employee can no longer contribute as their job moved into the commercial sector. Which now a 2nd individual is benefiting / contributing while the former govt employee can not pay they're bills, mortgage, put any money into the economy and etc , etc. Simple math ...Both ppl in ur example co…

The main argument for government employees is not that they generate more wealth spending than the private sector. If that were the case we'd just make everyone government employees.

Generally the government is worse at generating wealth (in fact, they almost entirely rely on taking wealth others could otherwise spend and then spending it themselves) to spend than the private sector. Firing a government employee who then must work in the private sector doesn't imply reduced spending on anything but the most short sighted of timelines.

Re: DOGE's government cuts may hurt business, companies warn investors

#39

Post by throway456aef »

ty6853 wrote: post #38
throway456aef wrote: post #37

Earlier quoted context omitted.

lol in ur example your saying one person out of two contributing to the economy makes the economy stronger... say what. The govt employee can no longer contribute as their job moved into the commercial sector. Which now a 2nd individual is benefiting / contributing while the former govt employee can not pay they're bills, mortgage, put any money into the economy and etc , etc. Simple math ...Both ppl in ur example co…

The main argument for government employees is not that they generate more wealth spending than the private sector. If that were the case we'd just make everyone government employees. Generally the government is worse at generating wealth (in fact, they almost entirely rely on taking wealth others could otherwise spend and then spending it themselves) to spend than the private sector. Firing a government employee who…

That's if the govt employee finds same level of pay or better in the private sector to possibly even another job in a timely fashion. If and only then they can continue to pay their bills, mortgage and contribute to the economy. If you spend time one hacker news you will see many techies out of work not able to find another job for months or more as well the argument of the fake job listings.

I'm doubtful of your argument and the economy will go into a recession.. on Fox news Trump today wouldn't say it would or wouldn't .. not reassuring but that's what I think that's what he wants to happen ..he just won't say it outright but this plan could back fire (he's playing with fire) and cause pain to every citizen!

Re: DOGE's government cuts may hurt business, companies warn investors

#40

Post by exe34 »

jongjong wrote: post #27
exe34 wrote: post #20

Earlier quoted context omitted.

so space x and Tesla are going to part with enough shares to pay back all the money they got from the public (and the growth that said money funded)?

For SpaceX, we can deduct the amount they saved which would have gone to NASA. For Tesla, we can look at foreign gov subsidies which went to foreign car companies like BYD, Toyota, etc... because it wouldn't make sense to target just Tesla... Given that governments of all nations play a key role in propping up their national auto companies.

It's really great that they have somebody looking out for the national interest at the top!
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