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Why would you quote some stupid blog to support this?
The US isn't the leader in "world manufacturing"....
Just because it's on a "stupid blog" doesn't mean it's wrong. In this case, it's right. The U.S. does manufacture more dollars worth of stuff than China. Or maybe it would be more accurate to say it did.
Of course, that doesn't consider that China's economy is less than half the size of the U.S. economy... so in relative terms, China makes twice as many widgets as we do. There's also a difference between manufacturing output and manufacturing jobs. Manufacturing output had been growing steadily for 30+ years, up until the recession anyways. Even post recession, we still produce twice as much as we did 35 years ago (in inflation adjusted dollars). Manufacturing jobs, on the other hand, have been free-falling for 15 years.
Economically, rising output and falling labor is good for the economy. Less people produce more widgets leaves more people free to do other value-adding things. Politically, in the era of jobs, jobs, jobs it isn't so good. You have a lot of people with no real applicable job skills who used to make a good living finding themselves out of work.
It would be far more logical to tax all capital gains as ordinary income, and than allow a credit for 1/2 the tax if documentation is provided showing it was an IPO. Trading existing equity does squat.
bobtn,
Typical bean counter argument that doesn't account for reaction. People will catch on that when they purchase those IPOs, its liquidity will be impacted because they know it will be worth less when they sell them for a gain. When I buy a stock, I think of upside and this cuts into it. That will mean they raise less revenue for an IPO anyway. I don't think we need another form called IPO-1A.
No. Why would that create any jobs? The problem is that people have way too much debt that they're struggling to pay down. Until that gets down to a reasonable level, consumer demand won't be normal. Until consumer demand isn't normal, businesses won't expand. And that's without considering the added negative impact of state and federal debt.
No. Why would that create any jobs? The problem is that people have way too much debt that they're struggling to pay down. Until that gets down to a reasonable level, consumer demand won't be normal. Until consumer demand isn't normal, businesses won't expand. And that's without considering the added negative impact of state and federal debt.
ambient,
How are you going to reduce the people's debt while not adding state and federal debt without a depression? Velocity? That would be one fast nickel.
The problem is the people's debt, which is all privately created money at interest.
All the talk is in reducing the deficit, the exact opposite of what is needed. Expect a long, long winter ahead.
No. Why would that create any jobs? The problem is that people have way too much debt that they're struggling to pay down. Until that gets down to a reasonable level, consumer demand won't be normal. Until consumer demand isn't normal, businesses won't expand. And that's without considering the added negative impact of state and federal debt.
If you double wages you can get an expanding economy much faster. It cuts the ratio of debt to income.
Lets say in 2012 Rick Perry wins and the first thing he does is cut the capital gains, estate tax to 0%, eliminate the corporate tax, and cuts the top marginal tax bracket to 15% will it unleash the economic engine of the private sector that will rain down prosperity for all? Will it create a massive flood of private sector jobs that will significantly reduce unemployment?
No, it will just translate to more money for the wealthy who are investing in the corporations who are outsourcing the jobs.
Wrong, gynedd1, Its truly about the absurdity of providing a super low tax rate for equity churn. That is the gist of what I see as insanity. What benefit does churn provide?
Japan is two decades into their popping real estate bubble and they haven't hit bottom yet. Your argument is false in part because the fed is not technically part of the government. It governs us but it is a privet entity with its own privet agenda. The stimulus was really small potatos compared to the $16 trillion that the fed has loaned out from 2008 until now.
As far as what the the government can do it can up the minimum wage and that will restore the ratio between the price of houses and the available income. This will get the pain over quickly as apposed to the long slow way we are headed.
The government should do no such things. Private markets should decide how much money an employee is worth to an employer and not the government. Private markets and the law of supply and demand should determine the prices of houses and the cost of mortgages. The government should keep hands off.
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