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how does taking money from person A and giving it to person B move money more than just leaving it in person A's hands, considering person A would have put it in the bank which the banks would have had to reloan out to the public, vs putting it in the bank which the banks loaned to the government.
Banks lend money to invest. But easily available capital (lots of money in lots of bank accounts) doesn't drive investment unless there's demand. Ready money in the hands of people who spend a high percentage of their income generate demand. (Again, this is not a value judgment, this is simply how it works.)
Unless you ascribe to trickle-down, which was relabeled because its original name - horse and sparrow economy - was too precise.
And rich people putting money in the bank to loan back out to the public sector CREATES JOBS..
Demand creates jobs. People wanting to but goods and services. Which neatly leads us back to Blodget's point: that one business owner's wage expense forms the revenue stream for other businesses.
I beleive Keynes even stipulated that his methods were not suited for a struggling economy in a recession, like ours.
Keynes said stimulus spending (running higher debts) should be brief and should be into new things that are not yet being done. I've written this before on this forum, but Solyndra is a good example of proper Keynesian stimulus spending, even if the company itself failed. They got one time cash for something not being done much at all in the private sector. Right off the bat, jobs were "created" and printed money was being put into circulation by employees as well as owners of Solyndra.
Where stimulus fails is simply throwing money at either oversaturating existing markets (higher education is a good example) or known and already bloated inefficiencies (public works under Davis-Bacon Act, etc).
We do too little proper Keynesianism, and way too much of the improper "interpretive" Keynesianism favored by corruptocrat morons who are simply rpinting money to give to their cronies. Keynesianism is not a failure because Keynesianism has not been implemented by anyone in the last 5 years, except on a very small scale.
I was ready to come in here guns blazing and acme safes dropping from the sky!!!
You are EXACTLY correct! As a business owner I had to file bankruptcy back in 2005, and I ran my business with far more oversight than the government does!
I kept dozens of people employed while sacrificing my own well being!
Banks lend money to invest. But easily available capital (lots of money in lots of bank accounts) doesn't drive investment unless there's demand. Ready money in the hands of people who spend a high percentage of their income generate demand. (Again, this is not a value judgment, this is simply how it works.)
Unless you ascribe to trickle-down, which was relabeled because its original name - horse and sparrow economy - was too precise.
You cannot have a prosperous economy based on fully loaded EBT cards though.
Your chart in post #67 shows the "top marginal tax bracket" revenues, those are wealthy people who pay taxes by capital gains.
Capital gains tax cuts temporarily increase revues, but they loose revenues in the long run. This "temporary" revenue increase has nothing to do with increased business or a stimulated economy, rather its because of human greed. When capital gains rates get cut it causes people to cash in their capital gains (they cash in when the rates are low.)
If you had capital gains and you knew their tax rate would fall from 20% to 15% in 2 months, would you cash them in today or wait 2 months to get the lower tax rate?
Notice your chart from post #67. From 1983-2000 there was a constant increase in tax revenues year after year. But after the year 2000 revenues fluctuated and fell in a way not seen anywhere else in your chart.
Notice how in the year 2003 revenues fell to 1999 levels. Then notice how in the year 2009 revenues fell to near 2000 levels. Your chart shows revenue decreases, and it shows falling/fluctuations after 2000 (not seen in the entire history of your chart.)
Who enables the economy? Do you think many rich people would be going to the banks if there wasn't a highway going there? Do you think there'd be many consumers if people were too busy dying from cholera because of a lack of potable drinking water? That's right, the government provides services that enable commerce.
They are already putting their money in the bank, what the hell are you talking about? The banks are taking that money and buying government debt instead of loaning it back out to the private sector.
So now your argument boils down to if the government doesnt run deficits, we wont have potable drinking water.. Here i am thinking i paid water bills for things like that..
You know when you have to go to ridiclousness to form an argument you lose.
Government shouldn't be run like a business. Government should not be concerned about profits or stock/bond prices; they should be concerned about providing for the people.
Only a statist would say such a thing. It's not the governments job to provide for the people. It's YOUR lazy ass job to provide for yourself.
Only a statist would say such a thing. It's not the governments job to provide for the people. It's YOUR lazy ass job to provide for yourself.
Sure it is. An American with a fully loaded EBT card is a happy American.
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