CDZ Lower Cost of Living Equals Cheaper Labor

[william the wie]

State and local taxes increase the cost of labor at every step from raw materials to purchase by the end user. Preliminary data, mostly GDP growth projections and current wage push inflation, indicates that my predictions of how fast the blue wall will lose tax base were overly optimistic. I would like to revise those predictions.

CA, IL, MA, NJ & NY will need a federal bail out and congressional permission to use Chapter three by election time.

Probable conditions on the deal include a criminal investigation of the state government:

Strict enforcement of the election laws.

Strict enforcement of all illegal alien laws.

 

[task0778]

I don't think your predictions are going to happen. Some if not all of those states may need a bail out by election time but they ain't going to get it. And I don't think Chapter 3 applies to US States, even if Congress gave their permission and Trump okayed it (neither of which is likely) it would get challenged in court and probably thrown out as unconstitutional.

Criminal investigation of a state gov't? Ain't going to happen. Not by the Feds anyway.
Strict enforcement of election laws? Please.
Strict enforcement of all illegal alien laws? Not a chance in hell.

And BTW, I don't see a lower cost of living leading to cheaper labor. I'm going to need to see the dots and how you connect them to understand this, cuz inflation appears to be rising and with it a higher COL.

 

[william the wie]

All taxes are ultimately a tax on either labor or capital. Capital is always rent seeking. Labor is a cost of production that is ultimately paid by producers and their capital sources econ 101.

 

[william the wie]

I don't think your predictions are going to happen. Some if not all of those states may need a bail out by election time but they ain't going to get it. And I don't think Chapter 3 applies to US States, even if Congress gave their permission and Trump okayed it (neither of which is likely) it would get challenged in court and probably thrown out as unconstitutional.

Criminal investigation of a state gov't? Ain't going to happen. Not by the Feds anyway.
Strict enforcement of election laws? Please.
Strict enforcement of all illegal alien laws? Not a chance in hell.

And BTW, I don't see a lower cost of living leading to cheaper labor. I'm going to need to see the dots and how you connect them to understand this, cuz inflation appears to be rising and with it a higher COL.

Those conditions are to ensure that that ghost cities are created, a necessary part of the Chinese model that Trump is using.

 

[Picaro]

Wages shouldn't be taxed at all, they aren't real income as defined in the classical models, they're just barter, with no real gains to be taxed. Value added is the only viable taxable wealth created.

In any case, Rockefeller said 'Competition is a sin." He said that because it led to highly inefficient industry and massive over-production, followed by depressions, suicidal cost cutting and product dumping below costs, and chaos, all bad for legitimate well run and managed businesses. It's myth that only government creates waste and inefficiency and poor allocation and waste of resources.

 

[Picaro]

All taxes are ultimately a tax on either labor or capital. Capital is always rent seeking. Labor is a cost of production that is ultimately paid by producers and their capital sources econ 101.

Not all labor is for others or for capitalists. A bigger problem is such scams as 'unlimited liability' being made available to anybody who wants it, instead of limiting it to corporations that serve a public benefit of some kind, and limiting the rates of profit it can earn in return for the privilege.

 

[task0778]

All taxes are ultimately a tax on either labor or capital. Capital is always rent seeking. Labor is a cost of production that is ultimately paid by producers and their capital sources econ 101.

I can see where lowering the cost of labor means less expensive goods and services, which could lead to a lower cost of living but not the other way around. You're still short some dots and connecting logic.

 

[task0778]

I don't think your predictions are going to happen. Some if not all of those states may need a bail out by election time but they ain't going to get it. And I don't think Chapter 3 applies to US States, even if Congress gave their permission and Trump okayed it (neither of which is likely) it would get challenged in court and probably thrown out as unconstitutional.

Criminal investigation of a state gov't? Ain't going to happen. Not by the Feds anyway.
Strict enforcement of election laws? Please.
Strict enforcement of all illegal alien laws? Not a chance in hell.

And BTW, I don't see a lower cost of living leading to cheaper labor. I'm going to need to see the dots and how you connect them to understand this, cuz inflation appears to be rising and with it a higher COL.

Those conditions are to ensure that that ghost cities are created, a necessary part of the Chinese model that Trump is using.

WHAAAT? You just left the reservation with this stuff about ghost cities and the Chinese model and Trump.

 

[william the wie]

Write offs do not count in the GDP equation, which is why China built ghost cities in double digits. Write downs of entire cities or states/provinces combined with migration increases GDP, wages and investment returns at a furious rate. That in turn attracts FDI (Foreign Direct Investment) which really puts growth on steroids. That traps the Ds with a reduced tax base and that leads to higher taxes and lower public services which further shrinks their tax base and increases outward migration even more. This is a proven system and it does work.

 

[Picaro]

I don't think your predictions are going to happen. Some if not all of those states may need a bail out by election time but they ain't going to get it. And I don't think Chapter 3 applies to US States, even if Congress gave their permission and Trump okayed it (neither of which is likely) it would get challenged in court and probably thrown out as unconstitutional.

Criminal investigation of a state gov't? Ain't going to happen. Not by the Feds anyway.
Strict enforcement of election laws? Please.
Strict enforcement of all illegal alien laws? Not a chance in hell.

And BTW, I don't see a lower cost of living leading to cheaper labor. I'm going to need to see the dots and how you connect them to understand this, cuz inflation appears to be rising and with it a higher COL.

Those conditions are to ensure that that ghost cities are created, a necessary part of the Chinese model that Trump is using.

WHAAAT? You just left the reservation with this stuff about ghost cities and the Chinese model and Trump.

He's talking about how the Red Chinese had massive government public works programs a couple of decades ago, including some that were full scale replicas of entire European cities, like Paris, and nobody came to live in them, mainly because they were unaffordable for most working class Chinese; they were ghost cities, very expensive ones. Some have apparently started filling up recently, though.

List of under-occupied developments in China - Wikipedia

They're like the U.S.'s penchant for 'Freeways to nowhere', and that giant Federally funded airport in Indiana, never occupied, only on super steroids.