Originally Posted by Biorganic
Hey RD! Well at least someone responded with an actual argument.
I see a few flaws in your argument, the Bush Tax Cuts have not worked. The trickle down does not work. Look at the current state of affairs, would we be where we are if taxes had not been cut so drastically 10+ years ago? I cannot answer that question as there have been many other issues compounding the finance problem, ie Iraq/Afghan Wars and their subsequently large expenditures, bubble burst etc etc. But it could easily be extrapolated that if tax revenue had not been decreased then we would be in less
Another issue I see with your argument is that people are not spending money as wantonly as you might believe. Many are so consumed with fear and worry about the future that they are holding their cards or folding instead of playing the hand. Even if a small business is expanding and hiring and increasing employee purchasing power, the employees are often buying goods that aren't taxed. Because of the prevalence of online shopping people are not paying as much in sales tax as they were 20 years ago. Thus the bill in question.
I am not saying to increase taxes to astronomical levels, just back to previous levels. Like the Clinton era, you know when we had a surplus.
Also, Who said that they needed to put all the money into shovel ready jobs. I think tons of money should go into alternative energy R&D as well as other R&D programs. By creating new tech or increasing efficiency on something like solar, via increased government funds, then bringing that tech to market, you would be creating jobs and progressing the market. Sell solar panels to china, manufacture them here, i see job jobs jobs and money money money. If the government would spend in the right sectors they do have the ability to stimulate the economy. Free market might work this out, except we have 10-15 big bullies in the school yard who bend the market/government to their will. Which sort of makes this a self defeating argument... lol. The government could help but they are basically owned so whatevs. -sigh-
Honestly, it is all a huge mess and there is no easy or clear answer. Currently Politics are very frustrating and congress makes me sick. But we need to do something.
Everyone sign up for BGB 28. Celebrating BOINC members achieving over a BILLION credits. Follow link in Sig to BGB 28 thread.
Cool Prizes await!!!
If the Bush era tax cuts don't work then why did the current administration extend them?
But yes, let's look at the current state of affair. Everyone always seems to bring up the cost of the two wars. While expensive, I hardly consider the $1.5 trillion spent on them over the last 12 years Earth shattering. The wars don't seem to have as much of an impact as people tend to believe. And to that, wouldn't that war spending fit nicely into the economic style you espouse? It's government spending in part on production, manufacturing, ect. It supports all those employed in those manufacturing sectors as well as the defense industry.
What is Earth shattering though, is the $9 trillion in debt we've racked up in the last 4 years. All we've had is government spending and we're all worse off than we were before. Deeper and deeper in the hole. Our credit rating has fallen, unemployment is holding steady at 7.8% Is this what we are to expect from governtment controlled spending? Is this the new normal? How does that make sense to anyone?
So we've now increased the tax rate for those top earners, actually all of us got a tax hike and more on the way and we're still not seeing any improvement.
But you are right on one thing, that there are many issues compouding the finance problem. But the most important one to look at is market uncertainty. It's the major reason why things are not moving forward and its mostly due to government involvment. We've got Obamacare ready to take full effect next year and business are now scrambling to find ways to cope with it. Business' tend not to grow when there is so much uncertainty. So get the government out of the free market and let it work like it is intended.
Another thing that you mentioned was dumping tons of money in to alternative energy. You mean like we did with Solyndra? That worked out great didn't it. Furthermore, it is not the governments responsibility to spur innovation in any area. Let the private sector work on it.
New or higher taxes are not going to do anything for the economy. Stop raising taxes, make government more efficient, and find budget cuts in the elimination of fraud, waste and abuse, not increased taxes and government spending. The current state of things makes it abundantly clear that we need less government intervention.
Everyone sign up for BGB 28. Celebrating BOINC members achieving over a BILLION credits. Follow link in Biorganics Sig to BGB 28 thread.
Cool Prizes await!!