It's all about "Supply and Demand"

Discussion in 'Economy' started by rdean, Dec 11, 2010.

  1. rdean
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    rdean rddean

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    There are those who believe if you just give money to the "rich" they will "make jobs".

    Or that "tax cuts" for corporations remove "uncertainty", and if you give them money, they will "make jobs".

    As if "make jobs" are "magic words".

    The truth is, in a capitalistic society, it all revolves around "supply and demand". If there is demand and people can pay for it, jobs will be created and corporations will hire. It's "just that simple".

    If no one in the Middle Class has any money and the only people with money are rich people, then there is no demand because no one can buy anything. If no one can buy anything, then there is no supply. With no supply, there are no jobs.

    For this reason, huge tax cuts for rich people do nothing for the economy. It is simply moved off shore to shelters. Obviously, unemployment benefits will spur the economy simply because the money goes right back in to the economy.

    So the "myth" that every thing "trickles down" from the rich can finally be put to bed.
     
    Last edited: Dec 11, 2010
  2. Revere
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    Revere BANNED

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    Democrats will vote for extending upper income tax cuts if they are bought off with enough spending.

    Ellison: Dems must "create crisis" to force GOP on tax cut | Minnesota Public Radio News

     
  3. rdean
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    rdean rddean

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    And you are completely correct. Democrats were "bought off". Republicans held hostage millions of Americans. Democrats caved in to Republicans demands so millions would not be left with not even a chunck of coal for Christmas. The difference between Republicans and Democrats. Republicans would be more than willing to ruin the lives of millions of Americans so a very few super rich could get a couple of unasked for and unneeded "bucks".

    Fiscal Strength

    Dear Mister President:

    We are writing to urge you to stand firm against those who would put politics ahead of their country.

    For the fiscal health of our nation and the well-being of our fellow citizens, we ask that you allow tax cuts on incomes over $1,000,000 to expire at the end of this year as scheduled.

    We make this request as loyal citizens who now or in the past earned an income of $1,000,000 per year or more.
     
    Last edited: Dec 11, 2010
  4. Quantum Windbag
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    Quantum Windbag Gold Member

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    Supply and demand is two sided equation, not one sided. You can have all the demand in the world, but if you cut off the supply there will be no jobs. That is shy Bush worked for an across the board tax cut that benefited everyone in the country. The Democrats are, like you, confused about how this works. They think they can stimulate demand while killing the supply side and that everything will be OK.
     
  5. rdean
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    rdean rddean

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    Concentrating the wealth of the nation into the hands of a very few cuts off "supply". The "supply" of money. Without money, what good is "demand"? Can it be any more obvious?
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Static Pie Sophistry, bub.
     
  7. loosecannon
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    loosecannon Senior Member

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    no it's monetarism 101.
     
  8. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    No - it's class warfare envy.

    Which is your comfort zone.
     
  9. loosecannon
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    loosecannon Senior Member

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    no it is fundamental monetarism.

    Economic activity is limited by the effective or productive money supply. Period. If money supply is stagnant it loses it's utility, hence the categories M1, M2, M3.

    Money earned by folks who live hand to mouth gets spent immediately so it has more velocity, performs more transactional work and stimulates more economic activity then money earned by corps or wealthier individuals who hoard.
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Taking money away from one group just to be spent by another doesn't create real economic growth, bub.

    But it does satisfy you and your Madame Defarges.
     

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