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And all of those products/services are bought by the upper 53%, likely in larger numbers.
The difference is that the 53% are also paying for those roads, the farm subsidies, etc., etc.
The United States, is a consumer economy. The more money the consumers have, the more goods are produced, the more money the wealthy make.
Thats why its good for them, for the 47% to not pay taxes.
We are in the battle ground of conservative vs. liberal here now though.
The conservative answer is, trickle down. That if the rich have more money, they'll open more businesses, which makes more jobs, and gives the working class more money to spend.
The liberal answer is, give the working class their basic needs, or less taxes, which gives them more money, which causes an increase in consumerism, which creates the need for more jobs, and since the wealthy are getting money for services they offer, they'll create more services, which creates more jobs.
Both ways seem to make sense, its just in how you like your money spent. Trouble is, we've tried trickle down, and it doesn't work. It was tried under Bush II, didn't work. Reagan tried it, didn't work. Hoover tried it, didn't work.
Trickle up does work, sometimes, but can get a bit over done.
As usual, the answer is somewhere in the middle. We can go back and forth all day on who is right. But hey, thats what our politicians are supposed to do, then compromise, and have the best decision. Trouble is, right now, there is no compromise right now in Washington. Which means conservatives are doing to little, and liberals are doing to much.
The conservative answer is, trickle down. That if the rich have more money, they'll open more businesses, which makes more jobs, and gives the working class more money to spend.
And that is exactly what is happening, just not in the US.
Both India and China are humming and have worker shortages.
China has instituted bonuses, better working conditions, education, etc. to attract workers. And this is in the factories..imagine the enticements for the white collar jobs ?
The trickle down is working..it's trickling down, headed towards the pier and hopping on a boat to China, India, Malaysia, Brazil, ......where the products are made and labor is cheap.
And that is exactly what is happening, just not in the US.
Both India and China are humming and have worker shortages.
China has instituted bonuses, better working conditions, education, etc. to attract workers. And this is in the factories..imagine the enticements for the white collar jobs ?
The trickle down is working..it's trickling down, headed towards the pier and hopping on a boat to China, India, Malaysia, Brazil, ......where the products are made and labor is cheap.
Tell that to the average Chinese worker, who gets next to nothing for their work. However, they get a lot of government services, because of the communist regime.
Also, Chinas workers had increased efficiency, which is the main reason for their growth, not capital investment.
"Curious about why China has done so well, an IMF research team recently examined the sources of that nation's growth and arrived at a surprising conclusion. Although capital accumulation--the growth in the country's stock of capital assets, such as new factories, manufacturing machinery, and communications systems--was important, as were the number of Chinese workers, a sharp, sustained increase in productivity (that is, increased worker efficiency) was the driving force behind the economic boom. During 1979-94 productivity gains accounted for more than 42 percent of China's growth and by the early 1990s had overtaken capital as the most significant source of that growth. This marks a departure from the traditional view of development in which capital investment takes the lead. This jump in productivity originated in the economic reforms begun in 1978."
Small business was what caused Chinas boom, not large capital investment, as Republicans would have you believe.
Despite what the news will tell you, Democrats are generally more helpful to small business, than Republicans. The Bush tax cuts, didn't help most small business, it helped the large businesses. While this did release capital, it didn't create jobs.
Most small business owners are middle class folks, making around 75 to 150,000 a year. This group, which I belong to, actually pay the highest tax percentage out of any group.
Its a good read, I suggest any capitalistic Republican should read it. It indicates what many people have been saying. Jobs come from the small business. Most small business owners are middle class. Middle class tax cuts, increase jobs, and incentives to work, which increase production.
Jobs come from the small business. Most small business owners are middle class. Middle class tax cuts, increase jobs, and incentives to work, which increase production.
I agree with you on that 100%..small business is the backbone of America. But they seem to be walked all over by both government and big business and taxpayers seem to lump them in with those greedy CEO's.
I think small businesses have it the worst these days..thety can't win no matter which way they turn.
Tell that to the average Chinese worker, who gets next to nothing for their work. However, they get a lot of government services, because of the communist regime.
I read your link from the IMF but that was dated 1997.
Here's articles dated 2010..very recent about the worker shortgage in China.
And here's an article dated 2009 warning of the shortage..due to their one child policy. The effects of that mandate were to start showing in 2010 and it's proven true so far.
Although capital accumulation--the growth in the country's stock of capital assets, such as new factories, manufacturing machinery, and communications systems--was important, as were the number of Chinese workers, a sharp, sustained increase in productivity (that is, increased worker efficiency) was the driving force behind the economic boom. During 1979-94 productivity gains accounted for more than 42 percent of China's growth and by the early 1990s had overtaken capital as the most significant source of that growth. This marks a departure from the traditional view of development in which capital investment takes the lead. This jump in productivity originated in the economic reforms begun in 1978."
No big surprise there. It's called profit motive. The government started allowing people to open their own businesses and keep the profits they earned. I was in China in 1988 and again in 2003-2004. The difference was night and day and it is all due to capitalism (although it is capitalism overseen by a still totalitarian government).
No big surprise there. It's called profit motive. The government started allowing people to open their own businesses and keep the profits they earned. I was in China in 1988 and again in 2003-2004. The difference was night and day and it is all due to capitalism (although it is capitalism overseen by a still totalitarian government).
Capitalism, yes, but wealth pooling in the upper class, no.
Thats part of what has happened in the US. All of the money has pooled at the top, and isn't "trickling down" so to speak.
Thats why the Republican argument was wrong under Bush. Conservative is ok, but tax cuts for the richest Americans, don't work. Tax cuts for the poorest Americans aren't possible, they already don't pay income tax. The tax cuts need to go to the middle class folks, that bust their buts, and pay in 20% or more of their income into taxes. While the richest Americans only pay in 13% of their income into taxes, or less.
As the article I posted earlier states, middle class growth, is what caused Chinas boom, not large corporations, not tax cuts for the wealthy.
Thats what Republicans need to learn, and they have fooled the middle class, small business owner into thinking that they represent their best interest. Thats just not been true lately. I really hope a middle class centeric Republican party emerges, we need one. Democrats have at least helped, some, but not nearly enough. Taxes aren't going up for small business, regardless of what they've been told. Hell, my dads business taxes will be cut for supplying healthcare to his workers. More money for him, thats a good thing.
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