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There are a few rules of thumb to keep in mind. First, you can't create a new business, or sustain an existing one, without the seed corn and nourishment of capital investment. Secondly, only businesses create jobs. You can't have a job without a business.
Third, jobs create all incomes, including middle-class incomes. Lastly, incomes create family and consumer spending. Got all that?
This is not complicated. It's common economic sense, but University of Chicago economist Casey Mulligan states this in a simpler way: Growth starts with investment and ends with consumer spending.
Its too bad the left doesn't get this.
This is all supply side common sense. But what does one do in a time of significant economic weakness like recession or depression? Or a major War?
Supply side doesn't work too well in these instances. Businesses don't start or expand when consumers are not spending. And then it becomes a viscous cycle and on down.
And in times of major War, there has to be central spending before the private side gets into the business of producing all the necessary materiel of War.
So in many cases it is consumers that create, help create or sustain current jobs. And when people are poor and not spending, there can be central moneys and assistance to improve on that. The private sector then gains when those folks spend this new money. The private sector can then possibly add jobs, expand or create new or more businesses as a recession so improves.
So you should see that there are times when new central moneys are income, and consumers create jobs. This is the demand side of the whole deal. And is probably much more important in a recession.
War is another example where businesses and jobs are create through new central moneys.
You need to look at both supply and demand side. Especially in relation to the current health and state of any given economy.
This is all supply side common sense. But what does one do in a time of significant economic weakness like recession or depression? Or a major War?
Supply side doesn't work too well in these instances. Businesses don't start or expand when consumers are not spending. And then it becomes a viscous cycle and on down.
raising capitol gains taxes doesnt help either.
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And in times of major War, there has to be central spending before the private side gets into the business of producing all the necessary materiel of War.
So in many cases it is consumers that create, help create or sustain current jobs. And when people are poor and not spending, there can be central moneys and assistance to improve on that. The private sector then gains when those folks spend this new money. The private sector can then possibly add jobs, expand or create new or more businesses as a recession so improves.
indirectly. Consumers are not investing in more capitol to spur growth.
Quote:
So you should see that there are times when new central moneys are income, and consumers create jobs. This is the demand side of the whole deal. And is probably much more important in a recession.
War is another example where businesses and jobs are create through new central moneys.
You need to look at both supply and demand side. Especially in relation to the current health and state of any given economy.
yes that makes sense. but the point is, when you punish the job creators, that is the ones creating and investing in capitol to hire people, it wont work.
its a double edged sword.
apparently you did not read the artilce because many people other than Kudlow has been preaching the same thing.
you keep raising taxes on the ones investing in capitol to create jobs and see if it gets any better.
The government doesnt create jobs and people should not be living off of welfare forever.
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Originally Posted by blktoptrvl
Kudlow is a corporate shill who only cares about this pockets and those of his cohorts. Nothing he says should be taken without an entire shaker of salt.
indirectly. Consumers are not investing in more capitol to spur growth.
yes that makes sense. but the point is, when you punish the job creators, that is the ones creating and investing in capitol to hire people, it wont work.
its a double edged sword.
This was your other statement and I mostly agree.
The bottom line is that in a recession or War, central moneys are needed to spur consumption and run a War. Federal Taxes are not necessary for either situations.
Federal Taxes, fees and fines are always optional, as the Federal Gov't is monetarily sovereign.
So in times of War or recession, things can still happen without raising taxes.
In almost all cases I would vote for lower Federal taxes, including capital gains. Taxes remove money from the economy. And unless we have gross or rampant inflation I see no reason for doing anything but lowering them.
We the consumers are the real job creators. You take away our disposable income, you get a lukewarm demand for goods and services. This leads to stagnant revenue and job growth for businesses. You stuff our nation's wealth into the pockets of the 1% (a GOP policy) you get a stalled economy.
the rich invest in capitol to CREATE JOBS. Sorry you are to dense to figure that out!
And his point is, what's the good in that if there's no demand?
We have historically low interest rates.... You'll.excuse.me if I could.care less about the producers or whatever term the right wing wants to use. It seems the right is too dense to figure the producers are investing in the developing.parts of the world, where the demand and growth is taking place.
It's cute the righties can't see the forest through the trees.
The most prosperous economies have a strong middle class, when most of the gains go to a few at the top while middle class stagnates is not a healthy environment. There is a tremendous amount of money and lobbyists in Washington that benefits the various industries, Walls Street, Oil, Real Estate..... Many not only benefit from the rules, they right them.
So rather than quoting basic economics principles what is Obama missing, seems like the tax structure hasn't changed that much so what specifically is Obama doing to stifle investment. Love this free market theorists that think you can just let businesses run completely unencumbered and we will all proper, if that was the case the middle class should be doing great not just those at the top end.
apparently you did not read the artilce because many people other than Kudlow has been preaching the same thing.
you keep raising taxes on the ones investing in capitol to create jobs and see if it gets any better.
The government doesnt create jobs and people should not be living off of welfare forever.
My comment that Kudlow is a shill stands for itself and does not need to be tired to any article - even though yes, I read it. However, just because other people claim something does not make it true. People have been spewing this "job creator" bs for years and there are plenty of others that dispute it as fact.
The economy roared along with much higher tax rates on unearned income than we have now, and people who are looking to keep the rates low are just looking out for their self interest.
Three dumb comments that don't even make sense, a wanton ignorance of how paragraphs work, and then a straight-faced reference to the Laffer Curve. Thanks for the laugh, Kudlow!
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