Yes we need to tax the wealthy and here is why.

[newonecoming2]

Originally Posted by InformedConsent

You're ignoring the fact that businesses are already facing increasing profit margin collapse, and you're advocating for even more by raising labor costs and therefore their commensurate higher cost consequences. Given such, how will increasing minimum wage to $20/hour create more jobs?

The reason that they are facing declining incomes is that there isn’t enough consumer spending money. Higher pay = increased borrowing capacity = increased money supply and inflation that should get higher employment. But you need to stimulate consumer spending along with the bump in pay. So print a bunch of money and just give it to everyone. This is highly inflationary. You can get a growing economy in a deflationary environment but it is really hard. A growing economy in an inflationary environment is much easier.

Originally Posted by rbohm

wrong. the only thing the local or state government can do as far as limiting what i can do with a piece of property, is through zoning laws preventing me from building an industrial business in a residential area, or vice versa. if i choose to to let the property sit idle there in NOTHING the government can do about it, unless i dont pay my taxes, or unless they go through eminent domain, and then only if there is the public good at stake, such as they are building a new park, a new road, etc. and then they must pay me fair value for the land.

Did you read about the supreme court case that let corporation’s exercise immanent domain? Also they can look at you with a microscope and see what they can find. Cross all your T’s and dot all your I’s but they can and do harass people into selling their land.

Originally Posted by rbohm

as for property taxes, the government CANNOT tax me at a higher rate unless they also tax EVERYONE ELSE at the SAME rate. if they try to single me out, they are violating a number of tax laws, and they can, and will, be sued over the matter.

Yes but they can tax everyone with idle land a high rate so that the land gets put into use.

Originally Posted by rbohm

again the problem with raising wages is that it makes everything else MORE expensive. the people will be paying more for fuel, food, clothing, etc. and it will not change home values one whit. so by the time wages are factored into the economy, the people will only be able to pay what they are already able to pay for their housing, if they are buying, and that means that those on the edge will still be on the edge, and the problems of the housing market will not go away. the only way that will happen is if we let the housing market collapse completely, and let the chips fall where they may, and let the housing market come back on its own.

In order for your argument to work the cost of everything would have to go up faster than minimum wage. The cost of everything on average would lag minimum wage a bit. It would not lead it. This is in the absence of price manipulation. And there is no grantee that this would be the actual case. The marginal workers would still be marginal, but slightly less so. More income and same percent disposable income gets you more money to pay on housing. One part of the price structure is supply and demand the other part of the price structure is cost vs. selling price. Demand is down because of 22% unemployment. Costs are the same or higher so profits are off. Bumping minimum wage will up the cost of labor and the cost of those things done by minimum wage workers and those below the new minimum wage. The cost of those things done by people above the new minimum wage will be unchanged. So some things will go up and some things will not. The coast of those things done by minimum wage earners will go up by the percent of the cost of labor that is the cost of the part. Labor can’t be more than 100% of the cost of something so the increase is going to be less than the increase in the cost of labor. So the price should be less on a percent of minimum wage after the bump than before. This will ripple and re-ripple through the economy and so we will have rising prices for quite some time after the minimum wage hike. Also wages will be pushed up by the new minimum wage and so the cost of things will be going up. The ability to borrow money will also be going up.

Originally Posted by ringwise

Can you explain to me exactly what right the "community" has to tell me what to do with my own property? As long as it doesn't hurt anyone else, what give them that right. Including the right to tax it until I do what they want me to?

Let me guess - you think eminent domain is OK to take people's property to give to developers?

In my town there was a new freeway put in, it was held up for 20 years by someone not wanting to sell their house under imminent domain. Eminent domain has its place. But like anything else it can and has been abused. I don’t like abuses.
“As long as it doesn't hurt anyone else, what give them that right.” As long as it doesn’t hurt anyone else they shouldn’t have the right. But you can stretch what does and doesn’t hurt someone else a long long way.

[workingclasshero]

Originally Posted by newonecoming2

The reason that they are facing declining incomes is that there isn’t enough consumer spending money. Higher pay = increased borrowing capacity = increased money supply and inflation that should get higher employment.

the only thing that will do is make EVERYTHING higher cost

we need to DEFLATE the cost of things...not inflate

what good is raising the minimum wage to $30/hr if a loaf of bread is going to cost $10




why do you want to take the value of the dollar into the dumps?????

[newonecoming2]

Originally Posted by workingclasshero

the only thing that will do is make EVERYTHING higher cost

Inflation at a small positive rate is good for the economy. You don’t get economic growth without inflation. Yes I am talking about making the cost of everything go up. And the more you make the more the cost of things will go up as compared to how much you make.

Originally Posted by workingclasshero

we need to DEFLATE the cost of things...not inflate

Deflation is what drove the Great Depression. Deflation is what drove Japan’s two lost decades. Deflation is really really bad for the economy.

Originally Posted by workingclasshero

what good is raising the minimum wage to $30/hr if a loaf of bread is going to cost $10

If the cost of bread is 100% the cost of labor to make it and you increase the cost of labor to make it by 400% then the cost of bread would be 400% higher. Now if the cost of bread is only 75% labor and the labor is minimum wage, then if you raise minimum wage by 400% then (4*3/4=300%) increase in the cost of bread. This accomplishes the same thing as deflating the prices of everything but it disrupts the economy a whole bunch less, and if you have price deflation hot on its heals comes wage deflation. If your wages go down how are you going to make your mortgage payment?

Originally Posted by workingclasshero

why do you want to take the value of the dollar into the dumps?????

In short to balance trade. When no one will loan us the money to buy their products then we will stop importing them.