Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The article says higher wages will stimulate the economy.
Exactly, which is why the government revenues remains rather steady as a percentage of GDP regardless of tax rates. (unless of course we take it to excessive levels)
The government only represents about 10% of the nations spending, its almost impossible for 10% of the nation to stimulate 90% because that 10% doesnt happen without taking it from the 90% first.
No, I said the knowledge has nothing to do with my job.
The government gets the money from the private sector; however, the purpose is to provide services the private sector can't or won't (unfeasible because of lack of profit/market) to the general public. Spending on state colleges is much more efficient than offering grants to private universities.
So the government takes the money from the public sector meaning they arent stimulating since that money would have been left in the economy and thus spent by the private sector.
Thank you for proving you dont know economics 101.
No, I said the knowledge has nothing to do with my job.
The government gets the money from the private sector; however, the purpose is to provide services the private sector can't or won't (unfeasible because of lack of profit/market) to the general public. Spending on state colleges is much more efficient than offering grants to private universities.
So I pay higher taxes and put off buying a refrigerator at HD so the government can give that money to Universities instead and that is "stimulating the economy" ?
NO NO NO
Me having money to buy that refrigerator at HD stimulates the economy.
So I pay higher taxes and put off buying a refrigerator at HD so the government can give that money to Universities instead and that is "stimulating the economy" ?
NO NO NO
Me having money to buy that refrigerator at HD stimulates the economy.
Exactly, and the larger the deficits, the more money taken from the economy to pump back in, which means all the government did was change how it was spent. They didnt at all stimulate.
Can I recommend a very good book that explains this? It's called "Fixing the Game" by Roger Martin - who is very much not a frothing-at-the-mouth leftist, but who rather sees himself as a classical capitalist out to save capitalism.
Anyway, in short: There are two markets, not one.
There's the real market - goods and services, and all the things that go into making and providing them.
Then there's the expectations market - stocks (apart form IPOs), futures etc.
Money put into the stock market is not "reinvested out into society". If - apart from the initial offering - you buy 100 shares of Apple, will Apple see that investment? Nope. Not a dime. They got their money from the original stock buyer, back when. Unless you're buying for the dividends (remember dividends?), you're in fact buying a lottery ticket writ large. That money isn't exchanged for goods and services, and it doesn't go on its merry way to be exchanged for more goods and services along the chain of consumers. It's locked out of the system as people hope their lottery ticket gains in value.
And so we find ourselves with companies more focused on share price (expectations) than on products and consumers (real market) - the dot-com bubble was a primo example. And so we try to stay perpetually growing, until the difference between reality and expectations become too big to ignore. This is a prescription for a Boom-Bust cycle, and that's what we're getting.
I mentioned Apple, because they - at least under Steve Jobs - paid attention to the real market. He famously built stuff that the public liked (mostly) and told the stockholders that they could buy stock if they trusted him, or sell if they didn't, but he didn't feel the slightest bit obligated. Their stock price would reflect Apple's actions, not dictate them, and if they didn't feel their interests were managed well by Apple, they could sell.
TL;DR: Money circulating makes for a wealthy capitalist economy. Money locked into stocks on the expectation that it'll increase - doesn't.
Well done. It's nice to read knowledge rather than the typical left/right rantings.
Spending bills originate in the House, which has been under GOP control for four years now. When are they going to start dealing with this?
I suppose there is not enough time to actually govern when you only work 113 days a year. Especially when a majority of the little time they are in session is taken up voting to defund the ACA 60 times. No time for anything else.
Are you seriously suggesting thta the Republican run House of Representatives has not submitted a budget to the Senate? Becasue that would be ignorant of you to suggest.
The OP headline is partly correct.
Today, there is more wealth than ever before in the hands of a few. That's an undeniable fact. Conservatives claim that only the business sector is capable of creating jobs. We see that job creation is far below expectation in US. If that's true, and the business sector has lots of cash, a conclusion can be easily reached...
That said, there are many businesses that struggle just to stay alive. Not every business is booming.
It takes a "special" level of intellectual acumen to embrace slavery as a virtue.
What else do you call compulsory labor for the benefit of another?
That's socialism - modernized slavery.
Great for the recipients.
Bad for the donors.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Becasue that would be ignorant of you to suggest.
