how will the left spin this

Discussion in 'Economy' started by manu1959, Apr 29, 2006.

  1. manu1959
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    manu1959 Left Coast Isolationist

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  2. Mr.Conley
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    Mr.Conley Senior Member

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    The cuts alone aren't responsible for that. Do you have any proof that tax cuts enacted in 2003 (I believe) suddenly jump started the economy 3 years after their creation?

    The tax cuts probably helped, but there are many more factors involved when one deals with the economy.
     
  3. manu1959
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    manu1959 Left Coast Isolationist

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    gee ya think?
     
  4. Huckleburry
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    Huckleburry Member

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    I have long argued on this board that these particular tax cuts were misplaced. Aimed at the demographics with the highest marginal propensity to save (MPS) these taxes were a very expensive impetus to the economy.

    Worse, these tax cuts have put downward pressure on bond prices by making them more expensive relative to alternative equity vehicles, principally, Stock and Real Estate.

    In the Real Estate market this appears to have helped fuel the creation of a bubble in some (but not all) markets ushering in the return of irrational exuberance. Of course other factors have contributed to Real Estates appreciation but these tax cuts are, none the less, a factor.

    To argue that these tax cuts have significantly contributed to recent economic performance seems a bit silly. First, Katrina necessitated huge domestic government expenditures. These expenditures have a direct impact on GDP growth.

    Second, the continued globalization of equity markets has made capital increasingly easy to come by while simultaneously reducing transaction costs, thereby lowering the cost of capital on a global scale. This benefits the United States directly because we are a capital intensive information economy.

    Finally, the continued success of the Asian economies has continued to benefit US firms while putting downward pressure on inflation. Additionally, these economies (especially china) have been willing to purchase American debt thereby funding our deficit and permitting further (though modest) growth.
     
  5. dmp
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    dmp Senior Member

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    There's your answer...(sigh).

    Some people live to find bad-news...some people simply cannot fathom that Conservatives, especially conservative Republicans simply KNOW BETTER how to run this nation.
     
  6. PsuedoGhost
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    PsuedoGhost Member

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    There's a difference between recognizing the immense complexity of the economy, and pandering to your party in order to make your position better. Anyone who claims that "tax cuts" alone are solely responsible for economic growth of any sort, are full of shiate. I'm not saying that because I'm a liberal or conservative, that's just the truth of the matter.
     
  7. manu1959
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    manu1959 Left Coast Isolationist

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    interesting.....do you all hold bush responsible for the high price of gas?
     
  8. Adam's Apple
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    Adam's Apple Senior Member

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  9. KarlMarx
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    KarlMarx Senior Member

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    Uh... yeah... our economy is so big, it takes about 18 months for any change to be fully felt. And oh, by the way, the economy wasn't "suddenly" jump started. It has been good for quite some time.

    Considering that Dubya inherited a recession in 2000, he's done quite well. At least the Left can no longer make the claim that Bush screwed up the economy.

    Now, if Bush and his band of puss gutted Republicans can start acting like conservatives and getting Uncle Sam's finances in order....
     
  10. Huckleburry
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    Huckleburry Member

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    DMP,
    If your idea of "Knowing" how best to run the country includes bankrupting the treasury to pay for pork projects (see federal Budget) then yes your band of conservatives are doing quite a good job. However, I think that creating massive debts to fund pet projects in economically irrelevant states is not the "best" way to run the country. If anyone out there can explain the economics of a cut and spend balance sheet then please by all means show me the light. I am sure there are more than a few bankers out there who would also be interested in what you have to say.
    Huck
     

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