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That's the big lie being told by the leftists who want to turn us into a socialist nation.
Merril Lynch is an investment firm. They invest in businesses (for their clients, who wish to put their money to work for them — something my father always told me to do, but I never listened; I should have).
Without investors, it is harder for a business to expand and grow. When investors do invest in business that do make a product, jobs are created as their business grows, and therfore opportunity for others.
I don't understand why this is such a hard concept for people. Were you ever offered a job by someone with no money? It doesn't happen.
This is true, but this not the issue we face right now. Money and investment is needed for business to grow, but businesses don't invest money just because they have it. They're not spending money on new hiring, new equipment, buildings, materials, etc. if the demand for their goods and services is not there. They'll lose money if they try to grow their business beyond demand. What good is a new retail location that doesn't get enough sales to turn a profit? They're not growing business because people aren't spending money on their goods and services.
US corporations set all-time profitability records in Q3 2012. They are sitting on oceans of cash. They have the cash and they're not investing it. So why would giving them more cash make them invest it?
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Originally Posted by nononsenseguy
Entrepreneurs start businesses. If not hindered by government over regulation and over taxation, as we are seeing today, coming from leftist "progressive" (socilists), there is a good chance they will prosper, and as they do, they hire people, and as they grow, they hire more people. That is "trickle down." The expression sounds like fantasy, but it is the reality of how an expanding economy, not hindered by government, works!
Tax receipts as a percentage of GDP are the lowest they've been since the 50s. In 2013 they go a little higher but still below the average for the last 50 years. So I'm not sure what you're basing that on.
Corporate taxes as a percentage of GDP have been steadily trending downward since the 1950s.
We have corporations with record profitability, record amounts of cash, corporate taxes trending downward for 60 years...and the answer to our economy is that they need more money? They don't need more money, they need more demand for their products.
The working class needs more money so they can buy more goods and services, so that businesses will have a reason to grow.
How do we accomplish that? That's a good question. One way is a progressive income tax system, but conservatives in recent times have come to view that as socialism.
We have a couple things going in our favor though. People are continuing to pay off their credit debt, which will leave them with more money to spend on goods and services. And the wealth effect from the stock market. As the value of people's investments increase, they feel better off and more secure, and become more willing to spend their money.
US corporations set all-time profitability records in Q3 2012. They are sitting on oceans of cash. They have the cash and they're not investing it. So why would giving them more cash make them invest it?
Because they just need it! Don't ask questions!
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We have corporations with record profitability, record amounts of cash, corporate taxes trending downward for 60 years...and the answer to our economy is that they need more money? They don't need more money, they need more demand for their products.
But supply side economics! Trickle down! Brain aneurysm!
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The working class needs more money so they can buy more goods and services, so that businesses will have a reason to grow.
That sounds like communism thinking there comrade! Supply side! Supply side!
How do we accomplish that? That's a good question. One way is a progressive income tax system, but conservatives in recent times have come to view that as socialism.
We have a couple things going in our favor though. People are continuing to pay off their credit debt, which will leave them with more money to spend on goods and services. And the wealth effect from the stock market. As the value of people's investments increase, they feel better off and more secure, and become more willing to spend their money.
Remove barriers to being entrepreneurial...
Just opening a shoe shine stand in San Francisco required the intervention of the majors office...
To simply open any establishment or even rent out a room in your own home requires a business tax certificate...
Apple Computer is one of the Kings of cash and they desperately want to build their world Corp Headquarters and even Apple is having trouble... too much of a good thing?
Medical is in a quandary right now... much was because of the election last year... are we going forward with Obama Care or not?
I have not read the thousands of pages of regulations... I'm sure no one is 100% compliant...
People save and it's bad for the economy... People spend and it's bad too...
Just opening a shoe shine stand in San Francisco required the intervention of the majors office...
To simply open any establishment or even rent out a room in your own home requires a business tax certificate...
Apple Computer is one of the Kings of cash and they desperately want to build their world Corp Headquarters and even Apple is having trouble... too much of a good thing?
That is a state issue, specifically a cali issue. Should have opened your shoe shine in Texas.
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People save and it's bad for the economy... People spend and it's bad too...
Spending is great when within ones means. Main reason corporations are standing on trillions in cash is lack of demand or spending.
A rising tide lifts all boats except the unseaworthy...
In other words... nothing is 100%.
Why do those who want for nothing material die from an overdose?
Some just cannot be helped because they lack even a spark of desire.
Kind of sad when one thinks about it... people have come here with nothing but a dream and made a success of it... not speaking a word of English and their children are MDs, Lawyers, Accountants, etc...
How does this happen?
We just had a paving job done at work... the owners, two brother's from Mexico started the business 35 years ago... neither speaks English well. They now employ 60 people paving parking lots...
How does this happen?
The Cambodian landscaper came her with nothing... just his wife and 2 year old child... they fled Cambodia... they are still Landscapers and each of the 3 children graduated the UC system one a Doctor, another a Lawyer and the youngest is a CPA...
How does this happen?
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, and in my experience, low tax rates are followed by exorbitant rent increases, making me worse off. 
