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What works on paper may not work when put into real practice. Thats the problem with liberalism and idealism. It looks good on paper, but fails miserably in the real world.
So do a lot of conservative ideas. "Works in theory, not in practice".
So do a lot of conservative ideas. "Works in theory, not in practice".
Trickle-down economics could be one of those ideas, but raising taxes on those making $250k/year or more during a recession like this is economic suicide. $250k/year is not the Warren Buffets, its the small business owner down the street, which may be forced to close or fire workers if taxes are raised.
The economy should be allowed to recover before raising taxes.
Until we see the government start to get serious about deficit reduction ;we are not going to see employers or investors take on more liabilty by hiring more employees;esapecailly when they are already seeing more liabilty on healthcare mandates coming.
I said it was an issue in the future.. How presidential, create a problem for FUTURE presidents to deal with ha?
And taking more money out of the economy to pay for this debt even FURTHER reduces the money into the economy which lowers the GDP.
But the benefits are immediately at least twice the possible cost later.
There is plenty of money in he now. Business is sitting on $2 trillion and ten year bonds are at 3.19%. That means there is no fear that money is crowded out.
Maybe I'm crazy but adding 4.5% to GDP and lowering unemployment by 2% is worth some theoretical crowding out later that could be addressed with tax rises when the economy is humming along. That seems reasonable since 40% of the stimulus was tax-cuts anyway.
But the benefits are immediately at least twice the possible cost later.
The benefits are very short term compared to the FOREVER costs, and yes, they are forever because the debt will NEVER be paid off..
Quote:
Originally Posted by MTAtech
There is plenty of money in he now. Business is sitting on $2 trillion and ten year bonds are at 3.19%. That means there is no fear that money is crowded out.
Let me guess, MSNBC watcher? I heard them make the exact argument just yesterday about how much money businesses are sitting on.. What you guys fail to recognize is WHY they are sitting on this much money.. FAILED DEMOCRATIC POLICIES.. Yep, keep talking about higher taxes, business mandates, taking from these people and they will continue to not only sit on that money, but increase it..
Ooh and the funniest part.. Having these people sit on the money.. DEMOCRATIC PLAN.. Yep.. the PLAN is to have them sit on it so it reduces inflation.. So you are ridiculing these people for actually doing what Democrats wanted them to do
Quote:
Originally Posted by MTAtech
Maybe I'm crazy but adding 4.5% to GDP and lowering unemployment by 2% is worth some theoretical crowding out later that could be addressed with tax rises when the economy is humming along.
Yes you are crazy because no artificial boost to the GDP is better than a real one, and they didnt lower unemployment, they simply moved when the jobs would happen... Remember those "shovel ready jobs"? THEY WERE GOING TO HAPPEN ALREADY.. thats why they are SHOVEL READY.. If you take a project that was going to happen next year, and you do it now, the NET JOB = ZERO.. Changing WHEN it happens, doesnt mean you boosted jobs..
Quote:
Originally Posted by MTAtech
That seems reasonable since 40% of the stimulus was tax-cuts anyway.
Nope.. They increased taxes far more than they reduced taxes.. Again, if they cut persons A taxes by $100, and then increased persons B taxes by $200, was there a cut, especially if person B is a business person and has to increase the cost of products by $200 to makeup for the new costs?
Trickle-down economics could be one of those ideas, but raising taxes on those making $250k/year or more during a recession like this is economic suicide. $250k/year is not the Warren Buffets, its the small business owner down the street, which may be forced to close or fire workers if taxes are raised.
The economy should be allowed to recover before raising taxes.
Some small business owners disagree:
""What we do in business, how we spend our money, how we allocate our resources -- that has very little to do with tax policy," Teahan says. "I map my business based on my customers, and what my customers want to buy, and what they can afford to buy.""
""We are fed by our consumers, not by our tax breaks," says Rick Poore, owner of Designwear, Inc., a screen-printing business based in Lincoln, Neb. "If you drive more people to my business, I will hire more people. It's as simple as that. If you give me a tax break, I'll just take the wife to the Bahamas.""
Anyway, back to the OP...
Interesting explanation for the jump in first-time filers here:
"The report immediately had economists puzzled and scrambling for explanations. Was the increase due to layoffs in the auto industry, following Japan's earthquake? Are companies cutting back because of higher gas prices?
According to a government official familiar with the report, it was something much more unusual. Schools on spring break in New York threw the entire reading off kilter. In some states, education workers -- such as cafeteria workers, bus drivers and other contracted employees -- are able to file for unemployment benefits when school is out of session. "
And of course, coming right on the heels of this news are the reports that private company hiring was at its highest levels in five years.
"Nonfarm payrolls rose 244,000 last month, the most in 11 months, the Labor Department said on Friday. The private sector accounted for all of the job gains last month, with payrolls rising 268,000, the largest rise since February 2006."
""What we do in business, how we spend our money, how we allocate our resources -- that has very little to do with tax policy," Teahan says. "I map my business based on my customers, and what my customers want to buy, and what they can afford to buy.""
""We are fed by our consumers, not by our tax breaks," says Rick Poore, owner of Designwear, Inc., a screen-printing business based in Lincoln, Neb. "If you drive more people to my business, I will hire more people. It's as simple as that. If you give me a tax break, I'll just take the wife to the Bahamas.""
Anyway, back to the OP...
Interesting explanation for the jump in first-time filers here:
"The report immediately had economists puzzled and scrambling for explanations. Was the increase due to layoffs in the auto industry, following Japan's earthquake? Are companies cutting back because of higher gas prices?
According to a government official familiar with the report, it was something much more unusual. Schools on spring break in New York threw the entire reading off kilter. In some states, education workers -- such as cafeteria workers, bus drivers and other contracted employees -- are able to file for unemployment benefits when school is out of session. "
And of course, coming right on the heels of this news are the reports that private company hiring was at its highest levels in five years.
"Nonfarm payrolls rose 244,000 last month, the most in 11 months, the Labor Department said on Friday. The private sector accounted for all of the job gains last month, with payrolls rising 268,000, the largest rise since February 2006."
As I clearly pointed out previously....there is good news mixed with the bad.
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Jobless claims hit 8 month high!
