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Has the QE been pulled out? No. There's been no correction. The stock market is still artificially inflated by QE.
And how much is inflated, approximately? 5? 10? 15? 20? 25? You're article doesn't know, do you know? Because I don't think anyone really does know. The market underwent a correction due to China and a sluggish outlook for global growth. The Fed will eventually raise rates from essentially "0" and reverse it's policy of QE (essentially do it backwards).
Here's how your article ends:
Quote:
Stocks are not especially overvalued by most measures, Grant countered, but added that segments of the market are in a bubble territory, such as the biotech sector.
That's the thing, companies aren't broadly overvalued and haven't been since QE started. China is where the bubble has been since 2008.
Oh, I knew fully well what's been going on all along. What's frustrating for me is to see people either unaware of or fail to acknowledge that the stock market was pumped up for the sake of those who have $24 trillion invested in their pension funds and retirement accounts: John and Jane Worker and Jack and Jill Retiree. In contrast, the top 1%'s total net wealth (including assets other than investments) is less than half of that.
Sure, the federal government could have just let the top 1% twist in the wind, but if the investment markets collapse, what happens to the millions of American workers and retirees whose retirement gets wiped out? The government sure as hell doesn't have the money to bail out millions of Americans, so they pumped up the stock market, instead.
See, pumping up the stock market wasn't the intent, it was a consequence. Cause and effect can be tricky. Again, you're focusing solely on monetary policy while ignoring fiscal policy.
Bernie supporters love using Denmark and other Scandinavian countries as role models for America. However, most supporters don't realize there is no such thing as a free meal.
For example, Denmark has a regressive tax system along with most Scandinavian countries. Not only are income taxes higher on middle class than here, but they also pay a 25% sales tax.
Would you be fine getting free college if it meant paying 25% sales tax and more in income tax for the rest of your lives?
Not a bernie supporter but I'd love it. Black market here I come!
I went to the Apple store and bought an iPad mini 4 wifi 64 gb.
In Finland the price is $546 with the VAT included ($106).
In the US the base price is $499, but apparently there's some kind of local sales tax, so I inserted a Philadelphia zip code. It added $39.92 into the price, making the grand total $539.
So despite us having a 24% VAT, I pay for my iPad only $7 more. Why is that?
Way to start off with an ad-hominem. This is going about like I expected so far.
citation needed about the regressivity of the danish tax system. The simple existence of a sales tax doesn't mean the entire system is necessarily regressive.
No, i think the college should be paid for at the state level.
Eliminate the federal student loan program, step 1.
Let states step in to fill the revenue vacuum by increasing state taxes.
The Danish tax structure is sometimes called regressive based on the existence of the VAT but it isn't exclusive tax.
As for how college should be paid for, the problem is the states. Arizona is a state that don't want to raise taxes and actually looks to cut education pushing the students to front the cost or take out private or public loans. The same issue exists for Medicaid expansion through Obamacare. Should all the states increase taxes and keep costs contained, I am fine with it but alas they aren't really looking to do that.
Quote:
Originally Posted by SilverBulletZ06
Umm... liberals rail against a flat tax and sale tax as being regressive. Maybe you should discuss it with NY Times, Seattle Times, NPR, and the other bastions why they write articles saying flat taxes and national sales taxes are bad. You may want to ask the Democratic party why their progressive "more you earn, the greater percentage you pay" taxes are the only ones they support.
I agree on student loans.. only I think that they should be privately funded.
The flat tax isn't regressive more so that it would hurt anyone making enough to have their effective tax rate below 15% (what's two percent really.) Sales taxes are regressive as the rich would pay less in effective taxes. For instance, say I make 18K a year and have to spend 80% of it. So I spend 14,400 and pay say 15% on taxes, I pay 2,160 in taxes or 12% of income. Someone making 180K would also need to spend 80% for them to have their taxes be 12% of income but they would likely spend less so let's say they spend 75%, they pay 11% of their income in taxes. A rich person making say 500K spends half of that would pay 8% of their income in taxes. Now do you get it?
As for student loans, I don't think the private sector is the way to go based on how predatory that system is, especially with them not being able to be discharged in bankruptcy.
I went to the Apple store and bought an iPad mini 4 wifi 64 gb.
In Finland the price is $546 with the VAT included ($106).
In the US the base price is $499, but apparently there's some kind of local sales tax, so I inserted a Philadelphia zip code. It added $39.92 into the price, making the grand total $539.
So despite us having a 24% VAT, I pay for my iPad only $7 more. Why is that?
It's not an easy answer. First off, your price is lower so it isn't a real apples to apples case. Maybe say a red delicious to say macintosh. Second off, the tax in PA is 8% vs. 24%, a much smaller tax rate.
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