eflatminor
Classical Liberal
- May 24, 2011
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I have just logically demonstrated the clear and undeniable flaw in conservative economic theory...
No, you did not. Not even close. But let me be clear before I DESTROY your argument. I'm not arguing "conservative" economic theory, I'm arguing in favor of limited government, typically the Austrian or Chicago school of economics. With that said, you're dead fucking wrong and here is why:
1) A slight reduction in the overall level of income among the 47% that do not currently pay federal income taxes would not "result in a net loss of economic activity". Why? Because you forget that a low, flat tax rate with a wide base will BOOST investments in job creating ventures, thereby increasing the number of folks paying taxes, which increases economic activity and therefore, revenue to the federal government.
2) You stated "The excess of earnings in these categories (richer people) go into the earners stock portfolios where it artificially inflates the value of the stocks". Not true. It is government intervention into markets that creates bubbles and artificial inflation. You're blaming rich people for what is caused by The Federal Reserve.
3) Perhaps most ignorantly, you state "...increasing economic activity through increased government spending". You don't get much dumber than that! Do you not realize that any money the government spends must first come out of the economy, typically from the most productive citizens and organization, then it is run through the corrupt and inefficient government bureaucracies before a single dime can be spent on 'stimulus'? What you are suggesting would be like me taking $100 out of the grocer's till, sticking a portion in my pocket to cover expenses, and then giving the rest to a homeless guy...who will hopefully buy food from the grocer. That's not stimulus, it's theft.
Now shut the fuck up and go read something other than Keynesian or Socialist propaganda. It's nauseating to those with a brain.