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Old Today, 11:02 AM
 
4,588 posts, read 1,699,744 times
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"Most firms haven't accelerated hiring or investments as a result of the tax-cut law enacted by Republicans last year, according to a new survey by the National Association for Business Economics (NABE). Eighty-one percent of NABE members surveyed said the 2017 law, known as the Tax Cuts and Jobs Act, hasn't led their firms to make changes to hiring or investment plans"

So we handed out tax cuts -- funded by increased public deficit financing -- and 81% aren't hiring employees nor investing in capital improvements. That means we are going to spend $1 Trillion in deficit dollars and get very little economic stimulus or activity in return?

All signs in the economy point towards restrained demand, not a shortage of capital (supply). Doing supply side policy when there's already an abundance of supply is, as Keynes put it, "pushing on a string."

Trickle down, once again, has proven to not trickle. Capital injected at the top is sticky, it stays up there.
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Old Today, 11:10 AM
 
34,062 posts, read 23,673,043 times
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This was known when it was instituted. It was made up from the beginning. No respected economist, or any economist really outside far right think tanks, gave it any credence even in the early 80s. It was instituted specifically to channel more wealth into the top 1%, and by that measure, it has been incredibly successful. So, in fact, it did work as intended.
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Old Today, 11:47 AM
 
7,564 posts, read 8,428,016 times
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Quote:
Originally Posted by timberline742 View Post
This was known when it was instituted. It was made up from the beginning. No respected economist, or any economist really outside far right think tanks, gave it any credence even in the early 80s. It was instituted specifically to channel more wealth into the top 1%, and by that measure, it has been incredibly successful. So, in fact, it did work as intended.
That's utterly untrue. Many respected economists support key notions within supply side theory.
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Old Today, 11:53 AM
 
3,767 posts, read 3,112,994 times
Reputation: 10440
Quote:
Originally Posted by Elliott_CA View Post
"Most firms haven't accelerated hiring or investments as a result of the tax-cut law enacted by Republicans last year, according to a new survey by the National Association for Business Economics (NABE). Eighty-one percent of NABE members surveyed said the 2017 law, known as the Tax Cuts and Jobs Act, hasn't led their firms to make changes to hiring or investment plans"

So we handed out tax cuts -- funded by increased public deficit financing -- and 81% aren't hiring employees nor investing in capital improvements. That means we are going to spend $1 Trillion in deficit dollars and get very little economic stimulus or activity in return?

All signs in the economy point towards restrained demand, not a shortage of capital (supply). Doing supply side policy when there's already an abundance of supply is, as Keynes put it, "pushing on a string."

Trickle down, once again, has proven to not trickle. Capital injected at the top is sticky, it stays up there.
It was a favorite argument by the wealthy business class, one that served to position their tax obligation as a "job killer", and a general barrier to that almighty sacred cow-- an ever increasing U.S. economic growth..The upward migration of wealth is a primary goal of any plutocratic construct, and both the dems and R's have contributed to the rise of that political form.

I think most people have some inkling of the economic playground being a place of terrific inequity, but we seem to have enough winners to create the picture of a general prosperity. And that spotlight on the winners allows for a business media circus reminiscent of Las Vegas casino's trotting out the winners while ignoring the Elephant in the room---The considerable hierarchy of losers..
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Old Today, 12:14 PM
 
4,588 posts, read 1,699,744 times
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Quote:
Originally Posted by EDS_ View Post
That's utterly untrue. Many respected economists support key notions within supply side theory.
Sure. Supply side policy makes sense when conditions warrant. The problem is, conservatives in Congress are a one-trick pony, they want supply side All The Time. You have to correctly diagnose the patient first before prescribing the medicine. Doing a supply side tax cut when there's already a global savings glut is like giving insulin to someone who doesn't have diabetes.
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Old Today, 12:16 PM
 
4,588 posts, read 1,699,744 times
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Quote:
Originally Posted by timberline742 View Post
It was instituted specifically to channel more wealth into the top 1%, and by that measure, it has been incredibly successful. So, in fact, it did work as intended.
Well, that's a dark take on it. If that's true then we might as well open the gates at the Treasury and Fort Knox and just let the wealthy walk in and help themselves.
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Old Today, 12:27 PM
DKM
 
Location: Thousand Oaks, CA
2,284 posts, read 779,607 times
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The corporate tax cuts were not done to create jobs. They were done to fix a screwed up system of taxation in a global age. It was a good fix (there were more than just rate reductions). but then they went in and screwed up non corporate taxes.
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Old Today, 12:43 PM
 
Location: The North
5,029 posts, read 8,847,423 times
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That's the beauty of nonsense economic theories. You can claim forever they work and caused all the growth that happened, or if you can't get them implemented you can claim they would have caused even more growth. There is no good alternative reality to prove it one way or the other. What they can't do is pass the common sense test. The notion that rich people won't work any more than they have to because of marginal tax rates is so ridiculous.

I do agree the corporate tax rates were a problem and should have been fixed, but revenue is revenue and if they were to be fixed the money has to come from somewhere else. To say its just going to magically resolve itself due to growth is such a pathetic fallacy. Politicians always seem to have no problem saying here's a tax cut for you, but they never say to have such a cut you have to take your pain elsewhere. The common man is too stupid to understand there are no free lunches.
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Old Today, 01:25 PM
 
Location: Philadelphia/South Jersey area
2,590 posts, read 1,199,979 times
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Quote:
Originally Posted by Elliott_CA View Post
Well, that's a dark take on it. If that's true then we might as well open the gates at the Treasury and Fort Knox and just let the wealthy walk in and help themselves.
lol, you mean they don't (that's a joke)

Anyhoo, back to the op. trickle down economics has been tried as far as I know since Regan, it has not worked yet so not sure who thought it would now.
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Old Today, 01:27 PM
 
Location: Washington state
4,920 posts, read 2,470,926 times
Reputation: 14459
Anybody who lived through the 80s and didn't know trickle down doesn't work, is totally clueless.
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