Will the U.S. Economy Collapse Without Government Debt?

  • Context: News 
  • Thread starter Thread starter Manchot
  • Start date Start date
  • Tags Tags
    Government
Click For Summary

Discussion Overview

The discussion revolves around the implications of a potential U.S. government shutdown, particularly focusing on how it would affect federal funding for research, government operations, and various payments to citizens. Participants explore the consequences of such a shutdown on different sectors, including research labs, contractors, and social services.

Discussion Character

  • Debate/contested
  • Technical explanation
  • Conceptual clarification

Main Points Raised

  • Some participants argue that a government shutdown would halt federal funding for research, leading to delays in payments for approved projects.
  • Others contend that while there may be delays, previously allocated funds would continue to flow, and not all government operations would cease.
  • Concerns are raised about the potential rescinding of spending authority by agencies, which could affect national labs and other research facilities.
  • One participant expresses frustration with the political dynamics surrounding budget approvals, suggesting that both parties engage in partisan politics rather than addressing spending issues effectively.
  • There are conflicting views on whether essential services, such as social security and Medicare payments, would be affected, with some asserting that these payments are unlikely to stop due to potential penalties for missed payments.
  • Participants share personal experiences and historical references to previous shutdowns, highlighting the uncertainty and varying impacts on government employees and contractors.
  • Some express skepticism about the term "government shutdown," suggesting it is used misleadingly to describe budgetary constraints rather than a complete cessation of government functions.

Areas of Agreement / Disagreement

Participants do not reach a consensus on the overall impact of a government shutdown. There are multiple competing views regarding the effects on research funding, essential services, and the operational status of government employees and contractors.

Contextual Notes

Participants reference historical shutdowns and their effects, indicating that outcomes may vary based on the specific circumstances of each shutdown. There is uncertainty regarding the definitions of "essential" versus "non-essential" personnel and how contracts with the government may influence the continuation of work during a shutdown.

  • #61
JDStupi said:
I think that this gets to the heart of one of our most potentially pressing modern economic issues. The very peculiar modern situation that is characterized by racking up a massive debt being nearly a pre-requisite for economic mobility.

First, our contemporary society is suffering massively from educational-inflation, x amount of years ago you could get a *decent* job without a college degree, and not necessarily have to worry about a glass-ceiling limiting you to a crawl-space.
And no, it is not because "the modern world demands more education", many jobs do not require college education, including newly created-jobs that didn't exist "x amount of years ago".

In order to properly enter the workforce, you nearly MUST put yourself in a situation where you are massively in debt before you can ever begin to get a decent paying job.
This is a problem with the structure of our economy and social situation.

It seems to work fine now, but what if there is a long-term crisis? The very structure of the economy must change, not just "cut government funding to students" that could be disasterous to our advantage in the global market, nor just "fund everything with government". Something has to be thought up, and the problem with politics is political inertia. Nobody wants to radically re-conceptualize the way we conduct our economy and, in turn, its ramifications for social structure.

That should be the first on our list. Not abortion, not drugs, or a slew of other banal crap that gets passed off for politics.

I would love to see that happen. But I know that it won't happen. So in the meantime, I'll build up my massive stock of debt.
 

Similar threads

  • · Replies 2 ·
Replies
2
Views
2K
  • · Replies 3 ·
Replies
3
Views
1K
Replies
22
Views
2K
  • · Replies 6 ·
Replies
6
Views
2K
  • · Replies 200 ·
7
Replies
200
Views
73K
  • · Replies 3 ·
Replies
3
Views
3K
  • · Replies 208 ·
7
Replies
208
Views
42K
  • · Replies 17 ·
Replies
17
Views
5K
  • · Replies 4 ·
Replies
4
Views
1K
  • · Replies 10 ·
Replies
10
Views
4K