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And the banks paid it back with interest. Are you really unaware of that?
The banks are being paid interest to hold reserves, and the Fed is buying their toxic assets. Are you aware of that?
Seriously guys, the banks were insolvent. In the real world that means your game is over, you go bankrupt and your assets are sold. But in the fantasy world where the banks are God (oh wait, that is the real world) the Fed pays them interest just for sitting on reserves, and buys their toxic assets.
So the very same people who got massively wealthy by perpetrating the biggest financial fraud in history, are getting even richer via the Fed.
Actually that isn't true. The income and wealth shares of the .1% declined greatly in 30s-70s and that was driven by high taxes and other wealth redistribution policies.
Moderator cut: .
That was my point - you raise the rates to 90% and no one will pay them
Thats what your graph shows the amount of tax dropped when you raised the rate in the 1930's to 1970's
Socialism doesn't work and it is tyrannical
Last edited by yellowbelle; 05-14-2016 at 02:13 PM..
Reason: personal attack/flame
That was my point - you raise the rates to 90% and no one will pay them
Thats what your graph shows the amount of tax dropped when you raised the rate in the 1930's to 1970's
Moderator cut: .
The charts I posted are average effective tax rates by income %ile, and wealth shares by the top .1%. If you are looking at the graph that dropped from the 30s to 70s, that is wealth shares, not tax.
Last edited by yellowbelle; 05-14-2016 at 02:13 PM..
Reason: quoted post has been moderated, reply to attack has also been removed
OK so my analogy wasn't perfect. How about stomp on the garden in heavy boots? I.e. heavy-handed federal taxation and regulation.
Using your garden analogy I'll run with it. Tilling the ground prior to planting is very disruptive. Getting the nitrogen content correct, water content correct, it all takes planning. Keeping a spot of dirt productive indefinitely takes real work, crop rotation, etc. If you aren't careful undesirable things like weeds will run amuck. Your boo boo in your metaphor was very telling. You called something that is good for a garden bad for it. We have gross imbalances in our economy. Correcting them is good for it, not is bad for it.
How much tax revenue do we need to have if we are going to pay 5% interest on our national debt?
$19,tillion That is $1 trillion a year if we yield 5% a year on our national debt. Fiscal year 2015 was $3.25 trillion in federal tax revenue. So just the interest on the national debt would be 2/7 of our national tax revenue. That is current debt and revenue.
So what percentage of our population do we need working at what minimum rate of pay to cover our obligations?
I come from Utah. Old school Utah. The Mormon Church runs its own welfare program. (Ronald Reagan sang its praise when he was running for president.) They will pay some of your bills like rent and feed you. But they make you work for it. No hand outs and no free ride.
I expect everyone to earn their way and pay their share of what is owed. We can't afford to have able bodied and minded people sitting idol. We also can't afford to have then working at anything less than $30hr, and that may not be enough. And they need to be earning their income.
Then what happens to the economy when all the small businesses go out of business who can't afford to pay their cashiers or cooks $30/hr? Probably not good things
Then what happens to the economy when all the small businesses go out of business who can't afford to pay their cashiers or cooks $30/hr? Probably not good things
They'll be able to afford it because there will be massive inflation. Doh!
I think ContrarianEcon has gone off the rails supporting a MW that high.
Then what happens to the economy when all the small businesses go out of business who can't afford to pay their cashiers or cooks $30/hr? Probably not good things
That is why you print up a $1trillion and hand it out as small business subsidies. Consumer stimulus and small business grants.
They'll be able to afford it because there will be massive inflation. Doh!
I think ContrarianEcon has gone off the rails supporting a MW that high.
You may well think that.
But you got a better alternative to get the economy back on track? (Stabilize it) That is the kind of inflation needed to make our debts serviceable.
We can get that much inflation by insisting we pay the people making the products we consume in the US, US minimum wage globally.
I remember what $3k per person spent extra in my local economy did back in 1,999, 2,000, and 2,001 did to the bottom end of the labor pool. If one trillion isn't enough then print up another. But remember this. There is about $2.4 trillion in excess reserves just sitting there looking for a chance to turn into $24 trillion in new debt. The FED can sell those assets they are holding on their books and we can use that excess reserve capacity to finance plenty of small startups.
But they can't as those debts are fraudulent and have to be held to maturity.
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