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Obama's new proposals "are more about symbols [and] votes than about accelerating the economic...

Obama's new proposals "are more about symbols [and] votes than about accelerating the economic recovery," but better late than never in discovering the virtues of tax cuts. Still, as long as the left and right ignore the "economy of the mind" in favor of an old economy based on heavy plant and equipment, we'll keep making the same mistakes.
Comments (25)
  • Jeff Nielson
    , contributor
    Comments (2464) | Send Message
     
    "The virtues of tax cuts".

     

    LOL!!!!!!!!!

     

    The U.S. is hopelessly insolvent. The U.S. taxes its citizens at a much lower rate than other Western democracies - and look how "wonderful" the economy is! So let's cut taxes MORE...

     

    It didn't work for Reagan a quarter century ago - it's just taken that long for his STUPIDITY to bring the U.S. to the brink of bankruptcy, so that means now is the 'perfect' time to resurrect "Reaganomics".

     

    Apparently NO ONE in the U.S. government is familiar with this definition of insanity: doing the SAME thing, but expecting a different result.
    9 Sep 2010, 06:37 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    The problem is the lack of structural incentives re taxes that inhibits true saving and thus capital formation. Taxes should be cut for investment whether its a small business reinvesting its profits or a retiree living off dividends.

     

    Structurally, taxes should be raised on the consumption side in order to goose the savings rate higher. However, I also disagree with this on principle. Why should the government confiscate so much in the first place? Why have we allowed government to grow so large and thus control so much of our lives?

     

    I think ideally, the solution is to raise taxes on the poor and middle class and decrease it on the rich. We need to get the electorate a little more motivated to reduce the size of government. Right now we have parasite voters who vote themselves raises right out of the treasury(that's your pocket and mine).

     

    The problem is therefore not taxes at all, but government spending. This is obvious, but perhaps I should put a LOL in my post for the dilweeds who think taxes are like Tony the Tiger, They're GRRRREAT!

     

    Nah.

     

    Taxes are theft by and large. We should focus on the real problem; central planners, lifetime politicians, do-gooders, spending addicted aristocrats who steal more and more of my money, and yours too.
    9 Sep 2010, 07:22 PM Reply Like
  • billknowsall
    , contributor
    Comments (266) | Send Message
     
    jeff, stop embarrassing yourself. The virulent anti-conservative stuff is most unbecoming. The US will muddle thru it's current difficulties just fine as more US CITIZENS decide to change the current political morass.You are a Canadian living in Canada; why do you get so bent out of shape about an issue not in your country? Why don't you push for higher Canadian taxes if they are such a great thing? (I'm sure there are enough dolts who could figure out ways to waste the $$- if not, we can send obama, pelosi, reid, dodd, frank et al up to help...) You actually sort of veered in the right direction with your idea that we are not taxed enough; read Wyatt's post about the lower half not paying income tax and voting themselves $$$ at our (real taxpayer) expense. As hopey changie said, "they need to get some skin in the game." Maybe then, we can do something about runaway gov't spending, which is the real problem..... KUDOS TO WYATT!
    9 Sep 2010, 09:53 PM Reply Like
  • stevepoddy
    , contributor
    Comments (54) | Send Message
     
    U.S.'s  major problem is the lack of innovative products.
    What do WE have to export?
    9 Sep 2010, 06:46 PM Reply Like
  • billknowsall
    , contributor
    Comments (266) | Send Message
     
    steve- we can export democrats...
    9 Sep 2010, 09:57 PM Reply Like
  • Hendershott
    , contributor
    Comments (1520) | Send Message
     
    The economy of the mind....so we think things up and then have them made in Asia and shipped back here to sell to whom?
    9 Sep 2010, 07:05 PM Reply Like
  • Fr33f0rm
    , contributor
    Comments (300) | Send Message
     
    This is such an ivory tower article that I find it hilarious. It is clear that the author believes that manufactured goods fall from the sky and the most challenging responsibility that most companies have is catching and organizing the goods.

     

    "Indeed, the often unseen negative that results from high taxes on dividends (set to rise to 39.6% in 2011) is that they create incentives among businesses to retain earnings rather than give them back to investors."...

     

    Retained earnings are used for growth and, yes, if development of new goods and services has a higher rate of return than the stock value increase caused by a dividend increase then companies will invest in themselves.

     

    If this country does not support domestic manufacturing then it doesn't matter how good that Goldman Sachs is at moving around money, they will provide less and less value to the U.S. because there will be less money to move around. You cannot have a functional economy that is entirely service based.

     

    Seriously, comparing equipment subsidies for companies to "Cash for Clunkers" is absurd. Cars are enormous wastes of capital (Yes, I own one but I've never bought a new one). And, when a company makes the decision to move forward with development or production then they have to justify the ROI of the project. The subsidy will allow many businesses to justify the expense of projects on hold and THE HIRING OF PEOPLE TO OPERATE THE MACHINES. (Sorry, I wanted to use underline but caps will have to do).

     

    So get out of your ivory tower and actually make something.
    9 Sep 2010, 07:22 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Businesses will only make something if the costs are justified in doing so, not by shouting at them.

     

    Unions shout at businesses. Politicians shout at businesses. Lawyers in courtrooms shout like televangelists and lie to juries about the cruel businesses they decide to piece apart.

     

    The democrats wonder aloud why businesses offshore jobs, but then they raise the cost of American labor through the EEOC, OSHA, worker's comp costs and mandates, abusive torts and a morally gangrene BAR, new sexual harassment laws, new ADA laws, new whistleblower laws, higher min. wage laws, new green fees they just made up, extortion, the EPA, you name it. The democrats do all this to American business and then wonder why we're getting the hell out of here.

     

    I hope more businesses leave. Why would I want to expand here among the spoiled classes of assorted victim's rights groups and quota mandates and new hour and wage laws and new PC language that we must inform everyone of every other year, things not to say, ways not to stare, regimented piss breaks, the avian flu making people wash their hands a dozen times each shift, you name it. Get me the hell out of here.

     

    America is dying.

     

    So, yeah, let's do this thing. Let's do obamacare. Let's raise the cost of labor even more on small business mom and pops. Whadduhsay? Let's fine you $200 per head per month if you don't sign them up. Sound good? That's another $300 k off the top for me. Uh, yeah, on second thought, I'm gonna wait and not hire. Thanks Hopey Change!

     

    Or, you could go to Ontario or Mexico or Peru or Costa Rica or (fill in the blank here) and you can just let the American wimp and her democrat party feast on the dying corpse of whatever's left here.

     

    In the end, it will rot. You can only force the entrepreneur so much before they decide the trouble's just not worth it anymore. I applaud them. Offshore. Get the hell out. The 'worker' is just too damn important to get the job done over here. Go somewhere else where maybe you're wanted.
    9 Sep 2010, 07:33 PM Reply Like
  • Dan in mpls
    , contributor
    Comments (244) | Send Message
     
    Wyatt, that was a wonderful rant. Thank you for saving me the time to type about the same thing. I couldn't have said it better. One point often missed in all this is that aside from the cost of government regulation, the general endless paperwork and grief of meeting with the petty government bureaucrats or filing the paperwork to comply is in itself maddening and time consuming. I have hit a wall with it all of late myself. I try to balance it off with the consolation that Obama is burning a lot of money that is being tossed my way ultimately as I rent to poor people who are being showered with government. The economy will certainly get much worse when the money dump ends as it surely must.
    9 Sep 2010, 09:47 PM Reply Like
  • Tack
    , contributor
    Comments (13037) | Send Message
     
    Dan:

     

    It might not necessarily get worse if the cutoff of the Government money diarrhea can be coupled with changes in Congress (November) that will make it clear that the giveaway party's over. In such case, the private citizens with real money may come out of hibernation, no longer harboring the same dgree of uncertainty and fear about what this Administration may do to them next.
    9 Sep 2010, 10:03 PM Reply Like
  • billybubb
    , contributor
    Comments (14) | Send Message
     
    The economy of the mind....so we think things up and then have them made in Asia and shipped back here to sell to whom? Hendershott, you are so right on.
    The ignorance here is astounding. "economy of mind" won't run a blown generator when our "economy of mind" power lines are hacked by terrorists or a rogue nation. "economy of mind" can't ship and install this massive generator that was built in Germany -- at least not for 2 months. "economy of mind goes dark when there is no power to run his laptop. Think, wouldn't it be better if we had the talent and industries to build those big heavy generator things here?
    We need a strong and vibrant working class -- that actually make things. And they need workers who get a salaries they can do better than just subsist on.
    I forget the exact statistic, but it was ridiculously out of balance -- something like 4% of our population controls 70% of the wealth? I'm probably wrong on that but it was ridiculous. That kind of imbalance creates pressure. If it goes on too long then the reaction to it is more extreme. So, let's keep cutting on education like Reagan started, and continued with all the Bush's. So we have a bunch of dumb, angry people, who will believe all the political ads that will be run by corporations to put their boys in power. Good job Republicans! You screwed the country real good.
    9 Sep 2010, 10:19 PM Reply Like
  • Hendershott
    , contributor
    Comments (1520) | Send Message
     
    You're not wrong about the wealth distribution.
    10 Sep 2010, 04:38 PM Reply Like
  • Leverage, America's Lifeblood
    , contributor
    Comments (34) | Send Message
     
    Economy of the mind? That vision leaves little for the "unwashed masses" IMHO

     

    We need to start making stuff again. Free trade policies have to be reciprocal for starters. Not the case is it?

     

    We spend as much or more on education than anyplace in the world BTW. The outcome of that spending doesn't seem to add up to me.
    9 Sep 2010, 10:39 PM Reply Like
  • billybubb
    , contributor
    Comments (14) | Send Message
     
    We're spending so much on education. Does that take in account that we are one of the more expensive places to live on the planet? No it doesn't add up when we're 26th in the world in literacy. I tutor people at the public library who just want to learn how to read. The stats are astounding. 45% of all Americans have trouble filling out a job application or reading the driving test in their state. Michele Rei (sp?) in DC has the right idea.
    9 Sep 2010, 10:47 PM Reply Like
  • bryantjulian
    , contributor
    Comments (104) | Send Message
     
    "old economy based on heavy plant and equipment, we'll keep making the same mistakes. "

     

    Mercantialism has been the principle source of wealth since man emerged from the dark ages. The "economy of mind" is snake oil by any other name. FYI, the People's Republic of China's resurgence as a world power is a direct result of their focus on the "old economy". What more proof do you need?
    9 Sep 2010, 10:59 PM Reply Like
  • Agbug
    , contributor
    Comments (1091) | Send Message
     
    Only one thumbs up until I added one, I'm surprised since I agree with your post so strongly. Vitriol against taxes would have racked up positive thumbs so much faster for you.

     

    The well off investor sees reducing taxes as the cure all for what ails us. So they can invest more money in multi-national corporations that will invest capital in Pacific Rim countries. Unfortunately for the American labor class, that's how capitalism works.

     

    So the government sets up a "transfer payments" system on an epic scale to keep the parking lot at Walmart full, for without it there would be bread lines. 40 million Americans on food stamps, millions more on extended un-employment, early Social Security checks or "disability", etc, etc. Way too many government employees at all levels writing rules and regulations. It all adds up to a phony economy.

     

    The common refrain is "cut my taxes so I can spend my hard earned money the way I see fit and those lazy bums can get a job". Where would they get a job that isn't somehow created out of false demand? I live in the Pacific Northwest and have watched the primary aluminum, forest products and mining industries all become shadows of their former selves. Shut down the mill and the mill town goes bust. Think on a grand scale as America losing her mill and our predicament becomes clear. Our standard of living has to go down. To try and keep it pumped up with "magic beans" from the Federal Reserve is only a delay tactic, and will make the inevitable adjustment worse. More education is the cry! You didn't need more than a high school diploma to produce most products, if that, and still don't. We don't need more over educated idiots. We need a value added manufacturing base, and that was our biggest export for the last 30 years.

     

    Your team can be Dems or Repubs,, but it doesn't change the fact that we are screwed IMO.
    10 Sep 2010, 08:24 AM Reply Like
  • Bob55
    , contributor
    Comments (150) | Send Message
     
    It will truly be interesting to look back at this period of time decades from now and witness the character of a nation at the cusp of emerging from the biggest economic meltdown since the Great Depression. Will we look back and find an America compassionate for those who have fallen on hard times in these toughest of times? Or will we find a country so absorbed in its financial recovery that it has lost sight that it goes beyond mere numbers and that there is very much a "human factor" behind it? Look beyond the mere 9.6% unemployment rate and millions upon millions and try to gain an understanding that people of all economic status, of all races, of all occupations (the majority of which have nothing to do with mortgages or banks) have seen their livelihood disappear.

     

    As Election Day approaches, need issues between Democrats and Republicans continue to be between the interests of rich and poor, between business and the common person? Can we come together and make common sense decisions that aren't based on party lines? If we cannot, rest assure the divide among the classes will be ever more pronounced. The question I ask to the average American is are we really worse off today than before our new President took office? Have all the new regulations for banks, credit card companies and health care companies really made it bad for the average American or does it reduce the possibility of any of us from losing it all?

     

    If the polls aren't correct about the Democrats being in serious trouble, maybe people realize that we might actually be better off than we were, that we're no longer on the precipice of economic collapse, that we're better protected against the downside and that maybe compassion should be a part of the American psyche so that no one falls through the cracks in our great society. However, if the polls prove true, it'll be about cutting spending, smaller government, keeping taxes low for the rich and big business.

     

    We'll see what happens November, but it'll be equally interesting how future generations of Americans will regard us.
    10 Sep 2010, 12:20 AM Reply Like
  • Agbug
    , contributor
    Comments (1091) | Send Message
     
    I spent the Labor Day weekend with a friends newly immigrated Chinese wife, age 35, at a large reservoir with all of the typical water craft, wake board boats and big pickups pulling them. After a couple of days of watching our orgy of consumption she went to bed with this comment "to waste so much is wrong, to save is glorious". You could tell she wasn't raised as an American Consumer.

     

    We do live pretty well on borrowed money, and borrowed time.
    10 Sep 2010, 12:55 AM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
     
    Our government is the most wasteful entity in this country. Their record of foolishly squandering taxpayer money is long and deep.

     

    Is there new evidence that the government has now changed its ways ? Has there been a decrease in waste in the last year ? Or have we just witnessed money-squandering on a scale never before seen in this country ?

     

    What would ever possess someone to argue that the most wasteful and incompetent among us should be seizing and spending even more money taken from its citizens ?

     

    What other tasks would you argue should be done by the most foolish and irresponsible ? Child care ? Police work ? Flying jumbo jets ?

     

    If you are not in favor of assigning important tasks to fools, is this really the best approach to the problem ? Or might there be better solutions, such as drastically reducing the number of fools on the Federal payroll ....or slashing spending that might seem unnecessary to the average person who is not a member of the ruling class, such as the $20 million spent on signs to inform us all of stimulus projects-- so that you know which fool to thank.
    10 Sep 2010, 01:17 AM Reply Like
  • BlueOkie
    , contributor
    Comments (4842) | Send Message
     
    We were in a Recession. This administration used the crisis to pass Obamacare, the largest increase in taxes yet to come. It has screwed things up so bad, we are talking about unemployment and double dip recession. We are at war and it hardly makes the newspaper. He almost killed this economy with Cap and Trade. Vote Democratic in Nov and you too will get a handout - in the soup line.
    10 Sep 2010, 08:19 AM Reply Like
  • Bob55
    , contributor
    Comments (150) | Send Message
     
    What has the economy been running on this past decade? If you study that the trend over the past decade, even before the latest economic meltdown, wages for you average worker has been growing at a minuscule level. Since the meltdown, with many companies laying of workers left and right, and whatever workers remain worker longer hours without compensation of any kind other than a message from upper management that they're still lucky to be holding a job. Of course, salaries continue to grow at a minuscule level all while corporations continue to make big profits mainly due to their cost-cutting efforts. All the while, I'm sure the upper management of such companies make out like geniuses and are rewarded as such while all those they've laid off join the unemployment line. My question to corporate America is whether upper management would have forgo their big bonuses if it meant saving jobs for your average worker or has the class divide grown ever wider?

     

    So when you speak of tax cuts for the rich and for businesses, would it really result in more jobs or simply more going to the people in the upper echelon of companies, not the average workers. For the ever-growing unemployed, Obamacare can only be seen as a blessing. For the people most hurt in the latest economic crisis, voting for a party where you can actually get a hand-out is far better than for a party where you're pretty much out of luck in getting anything at all because it is clear no one is deserving of it.
    10 Sep 2010, 10:33 PM Reply Like
  • BlueOkie
    , contributor
    Comments (4842) | Send Message
     
    The purpose of business is to make a profit. It is not to hire people and pay great benefits. A person is selling his services to a company. If he over values it, then no one will buy i.e. hire. Once employed, he should keep his job and get pay raises based on merit of work produced and value to the company; not because of some non-discrimination lawsuit. Yes there are companies that take advantage of their workers but in the long run the market will work it out.

     

    If you haven't looked at Adam Smith's Wealth of Nations - you might give it a try. Excellent insight on markets and capitalism
    11 Sep 2010, 08:34 AM Reply Like
  • billybubb
    , contributor
    Comments (14) | Send Message
     
    Blue Okie, I see you're a serious student of history...are you kidding me? Children worked in sweat shops until the government, which you probably hate, stopped it. Businesses, unless run by somebody who cares about his workers, which in large corps is almost never, will grind it's workers to death if it can get away with it.
    And you haven't even considered utilities, where the workers and their skills are necessary to keep everything else working. There's an old saying that there's no such thing as a Republican intellectual. I think that's because, in the rare times that they think, they only think of themselves.
    11 Sep 2010, 11:19 AM Reply Like
  • BlueOkie
    , contributor
    Comments (4842) | Send Message
     
    Children sweat shops, what century did that happen? The unions corrected that and did raise wages and working conditions. Now what do they do except raise dues and the leadership, who don't work, get more of union money.
    If you are tired of being a worker, start a business, take the risk and if successful you too can be rewarded with profit. Don't like that option, work yourself into a management position and see if the grass is greener.
    The best option for never having to work a day in your life, is find a job you love to do.
    12 Sep 2010, 09:17 AM Reply Like
  • Bob55
    , contributor
    Comments (150) | Send Message
     
    It's unfortunate, but it is this 'sweat shop' mentality that appears to be pervasive in not only corporate America but probably every establishment big and small, private or government-run. With jobs so scarce, it leaves room for so much exploitation. I'm sure it's not rare that one individual who be doing the job of two or three as jobs are cut and not replaced. I don't want to make it seem that there aren't good companies that treat their employees right and it is these companies that get the best out of their employees. For the ones that don't, I'm sure once the economy recovers, employees would start leaving that company in droves because mistreatment is never forgotten. Maybe not yet since jobs have yet to return, but "bad companies" will eventually witness a "brain drain" either because they've laid off so many of their experienced workers in favor of cheaper, inexperienced ones or good people eventually start leaving for greener pastures where they can receive respect, fair pay, better working hours, etc..

     

    It's high time politicians stop being mouthpieces for Big Business and work towards protecting the interests of common folks.
    11 Sep 2010, 11:33 PM Reply Like
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