Tax cuts in deficeit, inflationary times, recipie for Future economic disaster.

Discussion in 'Economy' started by 52ndStreet, Dec 15, 2010.

  1. 52ndStreet
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    52ndStreet VIP Member

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    President Obama, the Democrats, and the Republican party are setting Americas future generations up for an economic disaster.

    America is still in the midst of one of the worst economic recessions since the depression of 1929. Cutting taxes in times of record budget deficeits, and overall global economic downturn, is bound to come back and hit the American economy in a negative way at some point in the future.

    Everyone in America should pay more taxes, to help the Federal government out of this
    trillion dollar budget deficeit. Tax cuts now, is nothing more than a political gimmick that
    the Democrats and Republicans are submitting to the American public.A dangerous gimmick at that.

    We have been trying to give Americas 2% percent rich tax cuts for the past 8 years now and it has not produced any new Jobs. These rich people are not trickle downing the money that they are saving from these tax cuts for the rich. Trickle down economics
    is a big lie. It does not work.
    What we need is a direct stimulus payment to every tax filing American taxpayer.
    That will stimulate the economy right away.!
    A $10,000.00 payment to each and every tax paying American.
     
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    Last edited: Dec 15, 2010
  2. Whipp
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    Whipp Rookie

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    So what you are proposing is to..raise taxes to give people money to go spend?
     
  3. Intense
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    Intense Senior Member

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    [ame]http://www.youtube.com/watch?v=YmqoCHR14n8[/ame]
     
  4. Bern80
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    Bern80 Gold Member

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    Why on earth should the tax payers pay for government's addiction to spending? Is the cure for a crack addict to keep giving them crack in hopes they'll stop doing crack.

    I don't know if it's in the video, but Friedman said this is what happens when you let other people spend other people's money on other people. It is the least efficient form of spending there is. And you don't find the excuse awfully convenient that we just can't cut taxes in a defecit when the liklihood of us EVER being out of deficit is non-existant. If you give them more money they will continue to spend more money and the deficit is just going to get bigger and in 5, 10, 20, 50 years down the road you'll get to say the same thing again. We just gotta tax people more.
     
  5. Intense
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    Intense Senior Member

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    Maybe we do need to start looking at Government as an Addicted Crack Addict. You know, even willing to sell Grandma into Prostitution to get a fix. The jewelry is gone, the TV is gone, Gobment still can't get high enough. Caught it trying to get high smoking nicotine patches yesterday. Cocaine enemas, Gobment is really loosing it. ;)
     
  6. loosecannon
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    loosecannon Senior Member

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    and we should be looking at ourselves as oil addicts and as people addicted to cheap Chinese goods.

    Like it or not, blame the mirror or not, the government is us. Our whole economy has been running on fumes and debt since 2002 and as a rule we are easy to placate with a few small tax cuts and an economy that is only propped up with....you guessed it, more debt.

    Americans are paralyzed in polarization and rendered incapable of demanding anything from our leaders. And we are too_______to stop supporting the offshoring of our own jobs.

    People get the government they deserve.
     
  7. Whipp
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    Whipp Rookie

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    Americans pay quite a bit less tax than Germany, lowering taxes really isnt the issue..

    the issue is productivity, having a healthy export market , not being long term net importers..

    basicically living of what you earn and work to make not high finance ponzi schemes and credit cards..

    its total common sense but sure blame the nasty governement and tax its an american tradition.
     
  8. william the wie
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    william the wie Gold Member

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    I do blame the encouragement of consumption on the US government and that is the root cause of our problem.
     
  9. loosecannon
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    loosecannon Senior Member

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    can you please explain the benefit of net savings?

    I have tried in vain and can't even imagine any benefit that the economy realizes from a high savings rate beyond balast in downturns.

    Of course banking LOVES a high savings rate because it allows them to lend considerably more without even borrowing from the fed.
     
  10. william the wie
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    william the wie Gold Member

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    Net savings-depreciation = Net investment
    Investment = productivity
    About 6% net savings = annual physical depreciation of capital (not carved in stone but that is about the average % amount of capital equipment that wears out or is destroyed each year.

    Therefore savings of less than 6% requires invasion of capital and therefore lower productivity.
     

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