Tax cuts cause recessions, or booms of the economy?

[Skull Pilot]

It is always better when people keep more of their own money

 

[danielpalos]

It is always better when people keep more of their own money

cut discretionary spending.

 

[Toddsterpatriot]

I'm going to go more with the former, than the latter.

Hoover cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I know this was unintentional, but at least 2 of your examples 1929 and 2008 are examples of Federal Reserve caused recessions.

In at least both of those examples the FED kept interest rates artificially low for a long time.

Trump's tax cuts may lead to a recession or at least contribute to one, but not in the way you are thinking.

You had the bailouts, the "stimulus package", QE 1-whatever. Companies hoarded the money. Trump is trying to release all that money which will cause inflation which will probably cause a very overdue recession.

That will in part cause a recession. The other thing that I think will cause one is the vastly over valuation of companies like Amazon and Facebook.

I do think Facebook in the end will go under, but that is a different discussion all together.

Actually, Hayek's theories of cutting interest rates leading to over-investment & thus a boom & bust cycle, would also apply to cutting taxes, which also lead to over-investment & thus a boom & bust cycle.

You are ignoring a couple of things:

The difference between whatever damage the money from a tax cut would cause vs low interest rate is that the money from a tax cut already exists.

The banks have to get money from somewhere. If interest rates are low the money the banks get must come from the Fed who gets it from printing it (or now just adding zeros to balance sheets).

Also if the free market controlled interest rates banks would adjust rates accordingly and that would negate "cutting taxes, which also lead to over-investment & thus a boom & bust cycle".

The difference between whatever damage the money from a tax cut would cause

Damage? My tax cuts cause nothing but benefits.

If interest rates are low the money the banks get must come from the Fed

Banks don't get money from people and corporations when rates are low?

 

[SobieskiSavedEurope]

It is always better when people keep more of their own money

The average family of 4 got just over a $1,000 a year (Bonus) and all we got was this miserable debt & inflation.

Would the House GOP tax plan save a typical family $1,182?

 

[Dirk the Daring]

I'm going to go more with the former, than the latter.

Hoover cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Bust & Boom cycle.



Even Libertarians like Austrian economist Hayek have spoken of Bust & Boom cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Bust & Boom cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

BAM?
No mention of the mechanism?

I didn't mention the mechanism??

Oh I did in fact, I theorized that Tax-Cuts cause inflated markets such as in Housing & Stock which cause BOOM & BUST cycle.

That's kind of what happened with W. Bush, No?

No, that's not what happened with Bush. At all.

 

[SobieskiSavedEurope]

I'm going to go more with the former, than the latter.

Hoover cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Bust & Boom cycle.



Even Libertarians like Austrian economist Hayek have spoken of Bust & Boom cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Bust & Boom cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

BAM?
No mention of the mechanism?

I didn't mention the mechanism??

Oh I did in fact, I theorized that Tax-Cuts cause inflated markets such as in Housing & Stock which cause BOOM & BUST cycle.

That's kind of what happened with W. Bush, No?

No, that's not what happened with Bush. At all.

So, the Housing bubble didn't over-inflate under W. Bush??????????

That was actually being spoken of BEFORE the collapse, and yes obviously lowering taxes, especially on the rich does lead to rich using their tax cuts on investing in the Housing market more, thus leading to an over-inflated Housing Market.

 

[mudwhistle]

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I think what is missing are the words temporary.

During a recession, tax breaks are often enacted to serve as a stimulus. But if not short term, they will do as you say.

Trump borrowed 1.5 trillion to stimulate the economy. Most permanent, So,me will expire in something like 8 years. Way too long.

The debt from these will at this country alive. Pile onto the deficits from the unfunded increase in military spending, we are in serious trouble.

You're one of those idiots that thinks all money belongs to the government.

 

[RealDave]

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I think what is missing are the words temporary.

During a recession, tax breaks are often enacted to serve as a stimulus. But if not short term, they will do as you say.

Trump borrowed 1.5 trillion to stimulate the economy. Most permanent, So,me will expire in something like 8 years. Way too long.

The debt from these will at this country alive. Pile onto the deficits from the unfunded increase in military spending, we are in serious trouble.

You're one of those idiots that thinks all money belongs to the government.

You are one of those fucking idiots that think the government can spend money & just add it to the credit card.,

 

[mudwhistle]

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

Obama cut taxes, BAM, lackluster economy.
Trump cut taxes, BAM, booming economy.

Seems the moral to this story is there's a whole lot more going on than just taxes.
Obama added a bunch of regulations, BAM, lackluster economy.
Trump dumped a bunch of regulations, BAM booming economy.

If only that were a fact, it's actually more of a fact that Trump's America is seeing a very slight decline in real wages, because inflation has sky-rocketed.

You really need to post references with your claims.

O.2% real wage decrease last year.

Bloomberg - Are you a robot?

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

Obama cut taxes, BAM, lackluster economy.
Trump cut taxes, BAM, booming economy.

Seems the moral to this story is there's a whole lot more going on than just taxes.
Obama added a bunch of regulations, BAM, lackluster economy.
Trump dumped a bunch of regulations, BAM booming economy.

If only that were a fact, it's actually more of a fact that Trump's America is seeing a very slight decline in real wages, because inflation has sky-rocketed.

You really need to post references with your claims.

O.2% real wage decrease last year.

Bloomberg - Are you a robot?

Nonsense.
Most of the inflation happened in 2017.
It's tapered off this year to almost nothing.

 

[mudwhistle]

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I think what is missing are the words temporary.

During a recession, tax breaks are often enacted to serve as a stimulus. But if not short term, they will do as you say.

Trump borrowed 1.5 trillion to stimulate the economy. Most permanent, So,me will expire in something like 8 years. Way too long.

The debt from these will at this country alive. Pile onto the deficits from the unfunded increase in military spending, we are in serious trouble.

You're one of those idiots that thinks all money belongs to the government.

You are one of those fucking idiots that think the government can spend money & just add it to the credit card.,

No.
What they do is steal from Social security.

 

[SobieskiSavedEurope]

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

 

[Toddsterpatriot]

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

I knew you were an idiot.
Your inability to read the chart is further proof.

 

[Rambunctious]

Cut wasteful spending damn it!...I'm sick of people saying that the people that pay the bills shouldn't enjoy a tax cut...especially after Obama's 8 year recession and joblessness....Right now I do not worry nor care about increased national debt...we are bringing in a record amount of revenue into our treasury due to nearly full employment and massive investment......so stop the bellyaching over tax cuts...they work every time they are tried.....all of those examples like the Reagan and Bush cuts had one problem...a democrat house....so get out and vote to keep the house in the hands of the GOP.....and enjoy your tax cut worry free.....

 

[SobieskiSavedEurope]

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

I knew you were an idiot.
Your inability to read the chart is further proof.

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

I knew you were an idiot.
Your inability to read the chart is further proof.

Maybe you're the idiot because there's clearly a lack of real wage growth for 100's of years.

Maybe its time to try something different because our system stagnates???????

 

[caddo kid]

I'm going to go more with the former, than the latter.

Coolridge cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

The Great Orange Anus Depression is just around the corner

 

[caddo kid]

Cut wasteful spending damn it!...I'm sick of people saying that the people that pay the bills shouldn't enjoy a tax cut...especially after Obama's 8 year recession and joblessness....Right now I do not worry nor care about increased national debt...we are bringing in a record amount of revenue into our treasury due to nearly full employment and massive investment......so stop the bellyaching over tax cuts...they work every time they are tried.....all of those examples like the Reagan and Bush cuts had one problem...a democrat house....so get out and vote to keep the house in the hands of the GOP.....and enjoy your tax cut worry free.....

Look; the Republicans FINALLY admit, they don't care about DEBT

 

[Rambunctious]

Look; the Republicans FINALLY admit, they don't care about DEBT

The debt is not our biggest problem and it will be dealt with by the increased tax revenue to the Treasury......illegal immigration must be stopped and job growth must be continued...so vote GOP.....

 

[Toddsterpatriot]

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

I knew you were an idiot.
Your inability to read the chart is further proof.

It is always better when people keep more of their own money

This chart proves American real wages have barely budged since 1850.
https://www.economicshelp.org/wp-content/uploads/2011/09/Real-Wages-1855-2009.jpg

I knew you were an idiot.
Your inability to read the chart is further proof.

Maybe you're the idiot because there's clearly a lack of real wage growth for 100's of years.

Maybe its time to try something different because our system stagnates???????

Maybe you're the idiot because there's clearly a lack of real wage growth for 100's of years.​

You don't have to repeat yourself, your ignorance was clear the first time.
And could you find a crappier graph to misinterpret? LOL!​

 

[Mr.Blonde]

I'm going to go more with the former, than the latter.

Hoover cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I know this was unintentional, but at least 2 of your examples 1929 and 2008 are examples of Federal Reserve caused recessions.

In at least both of those examples the FED kept interest rates artificially low for a long time.

Trump's tax cuts may lead to a recession or at least contribute to one, but not in the way you are thinking.

You had the bailouts, the "stimulus package", QE 1-whatever. Companies hoarded the money. Trump is trying to release all that money which will cause inflation which will probably cause a very overdue recession.

That will in part cause a recession. The other thing that I think will cause one is the vastly over valuation of companies like Amazon and Facebook.

I do think Facebook in the end will go under, but that is a different discussion all together.

Actually, Hayek's theories of cutting interest rates leading to over-investment & thus a boom & bust cycle, would also apply to cutting taxes, which also lead to over-investment & thus a boom & bust cycle.

You are ignoring a couple of things:

The difference between whatever damage the money from a tax cut would cause vs low interest rate is that the money from a tax cut already exists.

The banks have to get money from somewhere. If interest rates are low the money the banks get must come from the Fed who gets it from printing it (or now just adding zeros to balance sheets).

Also if the free market controlled interest rates banks would adjust rates accordingly and that would negate "cutting taxes, which also lead to over-investment & thus a boom & bust cycle".

The difference between whatever damage the money from a tax cut would cause

Damage? My tax cuts cause nothing but benefits.

If interest rates are low the money the banks get must come from the Fed

Banks don't get money from people and corporations when rates are low?

"The difference between whatever damage the money from a tax cut would cause

Damage? My tax cuts cause nothing but benefits."

I agree. The other poster was saying that people keeping their money was going to have the same affect as artificially low interest rates.

I was simply pointing out higher interest rates would counter act that.

"If interest rates are low the money the banks get must come from the Fed

Banks don't get money from people and corporations when rates are low?"

They do, but not as much as when interest rates are high.

 

[Toddsterpatriot]

I'm going to go more with the former, than the latter.

Hoover cut taxes BAM the great depresssion of 1929.

Reagan cut taxes BAM the recession of 1982.

W. Bush cut taxes BAM the Great recession of 2007.


It seems there's absolutely no evidence that cutting taxes does much of anything positive for the economy.

It seems quite the opposite, we have more evidence that cutting taxes cause recessions.

Which could make a ton of sense, considering when the rich get tax cuts, they tend to buy up housing investments, and stocks causing a inflated market, which bursts into a bad economy AKA Boom & Bust cycle.



Even Libertarians like Austrian economist Hayek have spoken of Boom & Bust cycle, by Hayek's own account he theorized that cutting interest rates inflated the market investment, forming a Boom & Bust cycle.

Now, expland that to NOT JUST cutting interest rates, but also cutting taxes, and you're having very similar over-inflation of the market.

I know this was unintentional, but at least 2 of your examples 1929 and 2008 are examples of Federal Reserve caused recessions.

In at least both of those examples the FED kept interest rates artificially low for a long time.

Trump's tax cuts may lead to a recession or at least contribute to one, but not in the way you are thinking.

You had the bailouts, the "stimulus package", QE 1-whatever. Companies hoarded the money. Trump is trying to release all that money which will cause inflation which will probably cause a very overdue recession.

That will in part cause a recession. The other thing that I think will cause one is the vastly over valuation of companies like Amazon and Facebook.

I do think Facebook in the end will go under, but that is a different discussion all together.

Actually, Hayek's theories of cutting interest rates leading to over-investment & thus a boom & bust cycle, would also apply to cutting taxes, which also lead to over-investment & thus a boom & bust cycle.

You are ignoring a couple of things:

The difference between whatever damage the money from a tax cut would cause vs low interest rate is that the money from a tax cut already exists.

The banks have to get money from somewhere. If interest rates are low the money the banks get must come from the Fed who gets it from printing it (or now just adding zeros to balance sheets).

Also if the free market controlled interest rates banks would adjust rates accordingly and that would negate "cutting taxes, which also lead to over-investment & thus a boom & bust cycle".

The difference between whatever damage the money from a tax cut would cause

Damage? My tax cuts cause nothing but benefits.

If interest rates are low the money the banks get must come from the Fed

Banks don't get money from people and corporations when rates are low?

"The difference between whatever damage the money from a tax cut would cause

Damage? My tax cuts cause nothing but benefits."

I agree. The other poster was saying that people keeping their money was going to have the same affect as artificially low interest rates.

I was simply pointing out higher interest rates would counter act that.

"If interest rates are low the money the banks get must come from the Fed

Banks don't get money from people and corporations when rates are low?"

They do, but not as much as when interest rates are high.

They do, but not as much as when interest rates are high.

What do they do with the difference?