[Indentured Servant]

Originally Posted by malamute

Raising taxes will be counterproductive as that will only destroy more business and fewer people will want to work hard only to see the government take their money. Raising taxes makes it all the better for businesses to relocate out of the country and people have less money to spend on things or to save.

The only way out I can see is to cut government spending and that includes some of the high salaries of people paid by the state and cut back on the number of them. That will hurt some people but you have to consider the whole and driving away the productive isn't benefitting anyone.

Well, it goes against conventional recession fighting wisdom to raise taxes or interest rates during a recession, but that is what really needs to be done. When government cut spending, payrolls are cut. When payrolls are cut, spending and hence consumption is cut. There are millions of US jobs related to government spending. There are millions in spending related to government transfer payments. Government spending contributes to government revenues because government workers pay taxes also.

Nothing is going to prevent this nation from manifesting a 25% reduction in its standard of living over the next several years. Whether taxes are cut, spending is cut, taxes are raised or spending is increased, it’s all tantamount to rearranging the deck chairs on the titanic. If taxes are increased, they have to be increased on the middle class, because it’s a captive market. Raising the taxes on big business and the rich only encourages investment abroad.

All that being said, Michigan broke out the gate into bad times first and hardest, but as of late, Michigan job losses in the last several months is no longer the worst per capita, like it used to be. This demonstrates that the relative performance of Michigan, to other states, is getting better.

[malamute]

Originally Posted by Indentured Servant

Well, it goes against conventional recession fighting wisdom to raise taxes or interest rates during a recession, but that is what really needs to be done. When government cut spending, payrolls are cut. When payrolls are cut, spending and hence consumption is cut. There are millions of US jobs related to government spending. There are millions in spending related to government transfer payments. Government spending contributes to government revenues because government workers pay taxes also.

Nothing is going to prevent this nation from manifesting a 25% reduction in its standard of living over the next several years. Whether taxes are cut, spending is cut, taxes are raised or spending is increased, it’s all tantamount to rearranging the deck chairs on the titanic. If taxes are increased, they have to be increased on the middle class, because it’s a captive market. Raising the taxes on big business and the rich only encourages investment abroad.

All that being said, Michigan broke out the gate into bad times first and hardest, but as of late, Michigan job losses in the last several months is no longer the worst per capita, like it used to be. This demonstrates that the relative performance of Michigan, to other states, is getting better.

All you're doing is robbing Peter (the tax payer) to pay Paul (the government employee). When the government cuts back it only affects those on the government's payroll. When you rob Peter, he has less to spend so it really doesn't matter if Paul has more money to spend, Paul probably was earning way too much anyhow and there were too many Pauls.

It's like the teachers of Michigan, Michigan doesn't compete because teachers in Michigan are paid far more than teachers almost anywhere. So because of the very high wages, many people go to college for teaching degrees but there aren't enough positions opening. They have to leave the state if they want to work so Michigan not only wasted the taxpayer money for their education, it doesn't benefit from it, and the teachers are disappointed when they find out the salaries in other states.

[RomanGeneral]

Michigan flat out IS knocked out.This is not like you and me can control it and decide it`s fate upon our ill or well wishes..wtf fubaru