Supply side economics work...just not how we would like

Discussion in 'Clean Debate Zone' started by Vidi, Aug 7, 2012.

  1. Vidi
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    Vidi CDZ prohibited

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    Ever since I came to this forum, whenever economics, taxes and jobs are brought up, I see the same arguments.

    From the Right: Cutting taxes alllows for the job creators to invest that money and create more jobs

    From the Left: The Bush Tax cuts have been in place for a decade, Where are the jobs?


    Which is always followed by the usual round of the Blame Game.


    Well enough of that.

    Supply Side economics WORKS. It works exactly as the Right claims it does. Its just that simple.

    But wait says the Left, if thats true WHERE are the jobs?

    Excellent question. Heres the answer: Singapore, Guatamala, Equador, Thailand, China, Viet Nam, Mexico and a host of other countries.

    You see, if America were a closed system, where tax breaks could ONLY be spent/reinvested within the system. Then it would create jobs.

    But unfortuinately, our economic borders are wide open. Money can pretty much move freely both in and more importantly OUT of the country. So tax breaks here translate into more jobs for certain, but not AMERICAN JOBS.

    That is the fundamental flaw with the Pro Supply Side argument. It MAY create American jobs, but its just as likely to create CHINESE jobs.

    Discuss.
     
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    Last edited: Aug 7, 2012
  2. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    It is apparent that you think supply side economics means nothing more than tax breaks. You are mistaken. Also, I see no logic that connects your assertions of tax breaks to jobs created overseas instead of here. Maybe you could explain your position a little more in detail. And you might want to read up a little bit on what supply side economics really is.
     
  3. Vidi
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    Thats EXACTLy what it means. Supply Side economics, Trickle Down Economics, Reaganomics. All the same thing. It means give tax breaks to the rich so that they can reinvest that money which will in turn create more jobs.

    Unfortunately, there are no barriers at our borders keeping the money inside the country. So that money moves overseas and creates jobs there instead of here. After all more profit to be made paying a worker 20 cents an hour as oppsed to 20 dollars an hour.

     
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  4. Intense
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    It depends on what kind of job. Telemarketing, Phone Sales, Manufacturing, can easily go where the Labor can be found cheaper. Medical, Service Industry, Transport, boil down to local boots on the ground, at least until they can get a I Pad Application that can mow your lawn, or physically deliver packages. Until then, the powers that be, can only circumvent fail Labor Compensation, by bringing cheap labor over the borders, having to settle for only what they can get away with. :)
     
  5. Intense
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    Intense Senior Member

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    What bothers me more than the Tax issue is the Subsidies, and Government supported Schemes that give the Power Players unfair advantage. Too many schemes and scams.
     
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  6. Wiseacre
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    Taxes and regulations are a part of supply side economics, but not exclusively so. Anything that can be done to reduce costs or improve the quality and make it more valuable is what supply side is all about. It's not just taxes.
     
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  7. Vidi
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    Youre ignoring the fact that its the most fundamental principle of Supply Side economics.

    And if you fall back on the Supply creates demand argument. That is false and every manufacturer in America whos implemented lean manufacturing and just in time princiles over the last 20 years knows this.
     
  8. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    If a producer or service provider can find a way to cut costs then their service or product can be priced lower. If the price is lower, they can sell more of it. That is how supply side can increase it's own demand. Example: Henry Ford developed the assembly line, so he could greatly enhance the production of Ford automobiles. Supply was increased and made cheaper, and as a result demand was greatly increased.
     
  9. Vidi
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    "One's own employees ought to be one's own best customers," Mr. Ford said years later. "Paying high wages," he concluded, "is behind the prosperity of this country."

    Ford disagrees.

    They even named the principle after him.

     
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  10. uscitizen
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    uscitizen Senior Member

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    Truth!

    I have been saying for years that this was the inevitable outcome of globalization and "free trade". WE go down while the rest of the world goes up.
     
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