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Present rate less inflation at the moment is approaching zero. It will be a long long time before the real rate gets anywhere near 2% anymore 4.5%.
You are beating a dead horse. The doom prophets sold the inflation disaster coming hard for the last years. In fact it appears deflation or stagflation is much more likely to be the problem. That is what is likely with over the cliff...
You may disagree with the risk of rising interest rates, but that doesn't make me wrong-- or you for that matter.
I would agree with you that deflation is a real risk. It's actually the one the Fed fears most because they don't know how to reverse it. (Google japan lost decade.) To counter their perceived deflation, the Fed is pushing us on an inflationary path on the assumption that they will be able to foresee it and counteract the inflation before it gets out of hand. Good luck with that one. Very few saw inflation coming in the 70s and 80s and it will be the same this time.
But let's get back to your deflation scenario. Whereas inflation allows individual and corporate borrowers to repay debt with less valuable money, thereby reducing their burden, deflation requires them to pay with more valuable dollars increasing their burden. This would be a very scary scenario for the US as vast numbers of debtor corporations and individuals would go bust, and federal tax receipts would plummet.
Actually, this is all very simple. You simply cannot spend more than you take in forever. I assume we would agree on that point and simply disagree on when we are likely to reach the breaking point. Just beware whenever someone says, "This time it's different." It never is.
Don't know if this just belongs in politics, so I'll post this same post in three places:
I did some research, and saw and have heard that in Eisenhower's time the top one percent earners paid 50 percent tax. Since then, it has steadily dropped. So, I did some math. I looked at how much top one percent pay in taxes, which is about 20 percent, and this winds up (from figures in millions) to be $400 billion altogether for a year. But let's say for a couple years they paid 50 percent tax, especially if the Republicans are so gall-dang worried about this thing called debt that pretty much everyone who pays bills knows what it means, then the revenue going into the Treasury would be $1 trillion x 2 years = $2 trillion. That would pay off the debt, deficit, and a super max McDonald's hamburger dinner for four poor people for the rest of their lives. Anyone want to correct me? Should I send it to some group who specializes in teaching truth to money mongers? Keep in mind, after the two trillion goes out the window, the top one percent KEEP two trill.
You presume that those won't modifiy, or didn't modify, their behavious based on the tax code. Big Mistake
You may disagree with the risk of rising interest rates, but that doesn't make me wrong-- or you for that matter.
I would agree with you that deflation is a real risk. It's actually the one the Fed fears most because they don't know how to reverse it. (Google japan lost decade.) To counter their perceived deflation, the Fed is pushing us on an inflationary path on the assumption that they will be able to foresee it and counteract the inflation before it gets out of hand. Good luck with that one. Very few saw inflation coming in the 70s and 80s and it will be the same this time.
But let's get back to your deflation scenario. Whereas inflation allows individual and corporate borrowers to repay debt with less valuable money, thereby reducing their burden, deflation requires them to pay with more valuable dollars increasing their burden. This would be a very scary scenario for the US as vast numbers of debtor corporations and individuals would go bust, and federal tax receipts would plummet.
Actually, this is all very simple. You simply cannot spend more than you take in forever. I assume we would agree on that point and simply disagree on when we are likely to reach the breaking point. Just beware whenever someone says, "This time it's different." It never is.
We of course agree that over the years you have to get the deficit under control...in fact going down...And I would expect another ten years of excessive deficits could lead to an economic disaster.
I don't think that is the present problem however. The deficit must be dealt with in time but at the moment the economy is too vulnerable to even withstand over the cliff.
Got to survive the short term to get a cut at the longer term.
For things like huge economic decisions, I wonder how much credibility anonymous internet posters really have. This is PhD/MBA stuff. It's like our cleaning lady commenting on the best way to perform brain surgery.
No this is all of our stuff. You don't need a higher degree to understand basic economics. Even laymen can understand simple graphs, and the data show that the rich are not paying their fair share.
No this is all of our stuff. You don't need a higher degree to understand basic economics. Even laymen can understand simple graphs, and the data show that the rich are not paying their fair share.
"Fair" is a value judgement, it can't be measured or shown on a graph. We might not reach the same value judgement if we don't share the same values. Sounds to me like by "this is all our stuff" you mean my stuff is your stuff, (but probably not your stuff is my stuff.) Sorry, comrade, but my stuff is not your stuff.
No this is all of our stuff. You don't need a higher degree to understand basic economics. Even laymen can understand simple graphs, and the data show that the rich are not paying their fair share.
Hmmm. Somebody's cooking the books. "American Pie" (whoever they are) vs. The Tax Foundation. I gotta go with the latter....
There does not appear to be anything inconsistent between the two sources. You just need to read the fine print. They might conflict..but not with the data presented.
As a practical matter the overall tax load on all has gone down substantially over the last 30 years with the rich making out most and the low income making out least.
I have no particular problem with those making a million paying 40 or even 50% of their income in income taxes...they will simply work a little harder and make it up. Good for us all.
I have no particular problem with those making a million paying 40 or even 50% of their income in income taxes...they will simply work a little harder and make it up. Good for us all.
Is there some reason why you can't work a little harder and kick a little more in for the rest of us? I have no particular problem with you paying 40 or even 50% of your income. You seem like a bright guy. You'll figure out how to make ends meet, and probably even spend what's left a bit more wisely. Good for us all.
Is there some reason why you can't work a little harder and kick a little more in for the rest of us? I have no particular problem with you paying 40 or even 50% of your income. You seem like a bright guy. You'll figure out how to make ends meet, and probably even spend what's left a bit more wisely. Good for us all.
Glen, just give me the average of what the Fortune 500 CEO's haul in and I will smile everytime I have to send 50% of my money to the Feds.
The difference of an extra tax burden of $20,000 to one of the top 1% of income earners is nothing compared to the devastation of $200 layed upon someone making minimum wage with a family of four at home.
I hear a lot of bitching about all the freebies given "poor" people, but not one single one of the bitchers is ever willing to trade places with them in order to get all the "freebies".
Is there some reason why you can't work a little harder and kick a little more in for the rest of us? I have no particular problem with you paying 40 or even 50% of your income. You seem like a bright guy. You'll figure out how to make ends meet, and probably even spend what's left a bit more wisely. Good for us all.
Never made a million. Did over a third though 20 years ago.
Never complained about the taxes. Doubt that has changed.
Soaking the rich is easy...they are proud of it.
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Impact of increased taxes
