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Without available capital you can demand as much as you wish nothing will happen.
In the past, most small business started by saving money, rather than borrowing from greedy bankers that also want a cut of the action.
Our debt based economy mostly benefits the greedy Wall Street criminals, but fortunately, it is only a matter of time until it crashes, because they don't know when to stop.
In the past, Wall Street accounted for 10% of GDP. Today it accounts for 40% of GDP, backed only by fiat paper, suckering as many people in as they can, extracting the wealth from those that actually work for a living.
And increasing taxes on wealthy people doesn't mean the poor people will directly get that money, this is Washington D.C. we're talking about. Raising taxes on anyone only means the politicians have more money to buy votes with and fund special interest with. It's incredibly naive to think the government is more efficient at distributing capital than business person is. The government has proven that time and time again from paying to run GD shrimp on treadmills to paying for crap like Solyndra and the 8 other failed institutions. Short of government subsidizing solar energy, have you seen anyone willing to buy solar that didn't first start talking about the government write off they can get from it?
How frigging stupid. The poor don't need to get the tax money the uber wealthy SHOULD be paying. Those tax dollars should be used to pay down the public debt the uber wealthy have rung up with their repeated raids on the fed and the treasury. Bailouts, pension fund defaults, savings and loan defaults, unfunded oil wars, TARP. Much of the public debt was run up by the industrial military complex and the allies. It is time THEY start clearing that huge debt.
[quote=EinsteinsGhost;24363061]Would you hire people to produce goods and services without worrying about demand? I won't.
Compared to what?
Hence my point. You don't go hiring people because you have the money to. You go hire people when you see business opportunity, a demand for your goods/services.[/quote]
That's exactly it--demand CREATES business opportunity. Without demand, there is no business.
As far as access to capital goes, I've only known of a couple of businesses in my life that used venture capital. Some small businesses start out with a small personal investment and they bootstrap it--they reinvest profits until they get to the point where they have to have a line of credit, etc. and then they go to a bank. Some start with the bank, or they self finance from the start. I'm a part of three businesses--my husband is a partner in one, I'm the owner of a small business myself, and I'm also part owner in my family's farming operation. We employ about 60 people between the three of them, plus family. That's job creation--not giving some guy a break on his personal income taxes when those funds don't even go back into the business to begin with.
Your absolutely correct. Without any money in the middle class, we are going to continue to spiral downward.
Wages have been stagnating for the past 30 years for the middle and lower classes. In order to compensate for that decline, the criminal class made credit cheap and easily available, and housing more available for people to live off the equity.
That has all come to and end. Credit Card usage is at an all time low because American's are wising up and only spending what they have.
Quote:
Visa, MasterCard could be hurt by lower card usage
Americans have reached for their credit cards less often this year. That's bad news for Visa and MasterCard, which report their quarterly earnings Wednesday.
The American consumer is all tapped out and the criminal class can't squeeze blood from a turnip.
The criminal class are not done yet though, and are now looking at cutting as many things as possible to continue the ponzi scheme for themselves.
They have quite the dilemma though, because they cannot cut welfare that they used to subsidize cheap labor.
That would chase all the cheap labor away, and fields would like fallow or rot until wages go up to meet what American's are willing to do.
Quote:
Originally Posted by Konraden
It's circular, but the point-of-failure in this recession isn't with decreased capital, but with decrease demand. If you don't have enough demand, you don't start enforcing economic policies which are designed to aid in raising capital. Increased capital doesn't create or increase demand!
We have a fundamental demand crisis in the United States as a direct result of income inequality. Too many people are making too little money. Cutting taxes for the wealthy, for the "job creators," doesn't create jobs. Raising them will.
Like this TED speaker notes, he can't buy enough cars, enough pairs of pants as a millionaire, to replace the pant-buying and car-buying power of millions of middle-class Americans. Raising his taxes benefits both the middle-class and the top-class more than cutting taxes will, because in the end, an increased demand means money for the top.
Cutting taxes for the top is shortsighted and selfish. Cut taxes now might save them a few hundred thousand dollars (on the high end) at the expense of millions of potential profit down the road. An "I got mine" attitude.
Your absolutely correct. Without any money in the middle class, we are going to continue to spiral downward.
Wages have been stagnating for the past 30 years for the middle and lower classes. In order to compensate for that decline, the criminal class made credit cheap and easily available, and housing more available for people to live off the equity.
That has all come to and end. Credit Card usage is at an all time low because American's are wising up and only spending what they have.
The American consumer is all tapped out and the criminal class can't squeeze blood from a turnip.
Yes, because it's the drug suppliers fault the drug users are addicted. They kidnapped those addicts and got them addicted then sent them out to rob and steal to keep their habits up.
Or, letter Q, people make choices and if you made a choice to leverage yourself to the hilt it's no one else's fault but your own.
What are you talking about? Mechanization is part of life. The trick is to have a better trained and educated work force and higher tech industries to replace those low skill jobs replaced by machines. That doesn't just mean more college grads--its means more people with tech and trade school skills. It also means this country doing whatever it can to build a manufacturing base here at home vs. basically paying companies through tax loopholes and pork, and then smiling and waving "bye bye" while they hire off shore.
And increasing taxes on wealthy people doesn't mean the poor people will directly get that money, this is Washington D.C. we're talking about. Raising taxes on anyone only means the politicians have more money to buy votes with and fund special interest with. It's incredibly naive to think the government is more efficient at distributing capital than business person is. The government has proven that time and time again from paying to run GD shrimp on treadmills to paying for crap like Solyndra and the 8 other failed institutions. Short of government subsidizing solar energy, have you seen anyone willing to buy solar that didn't first start talking about the government write off they can get from it?
How about paying on the debt and reinvesting in trying to get some kind of manufacturing base back in this country?
How about paying on the debt and reinvesting in trying to get some kind of manufacturing base back in this country?
Paying on the debt? You'd need twice as many rich people as there are now and then you'd need to tax them at 100% rates to break even on the yearly budget.
Then of course you'll have the shortfalls of SS and Medicare and that will require another whole set of rich people equal to the amount now to keep them going temporarily for a few more decades.
As far as manufacturing goes, you folks are incredibly dense or you love to practice self-delusion. What part of $35/hr U.S. wages can't compete with $2.15/hr wages is so hard to comprehend?
Paying on the debt? You'd need twice as many rich people as there are now and then you'd need to tax them at 100% rates to break even on the yearly budget.
Then of course you'll have the shortfalls of SS and Medicare and that will require another whole set of rich people equal to the amount now to keep them going temporarily for a few more decades.
You only need 66% of personal income of the top 1% to pay the entire budget.
And, let us not forget, that doesn't include the billions that are made through non-income which isn't included with the taxes there.
So patently false.
Quote:
As far as manufacturing goes, you folks are incredibly dense or you love to practice self-delusion. What part of $35/hr U.S. wages can't compete with $2.15/hr wages is so hard to comprehend?
And yet Japan has no problem making their cars here...
it absolutely is evidence, i have ran the numbers at the business level myself.
Quote:
Originally Posted by mb1547
Oh good grief. No one, and I mean no one, is talking about raising corporate taxes--they're talking about raising personal income taxes, and lowering corporate taxes. That's a heck of a note--the only people proposing a solidly conservative plan are the democrats, and that's why I'm about as frustrated as I've ever been with the republican party. If your friend who rents out houses isn't incorporated then he needs a better bookkeeper/accountant.
it doesnt matter if he is incorporated or not. when his costs go up, so do rents. it is that simple. the only advantage for him to incorporate is that it would limit his liability should anything untoward happen to his tenants. and yes i have tried to get him to incorporate but he refuses. and by the way, i dont do his books for him, it avoids issues between us as friends.
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