The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
They still pay taxes on earnings here in the US. Problem is that when corporations find their earnings outside the US are higher than in the US then they find it is time to move.
Over time tax policies globally will converge as they are really just a cost on capital. They will converge the easy way or the hard way but they will converge. Globalization is a relentless force.
This idea that companies need to stay in the US take a lot for granted.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Step back from all the bank bashing for a moment and just look at the system overall. Banks are the primary way which the FR transmits policy into the general economy so they are needed from that perspective. If banks are under-capitalized then they go bankrupt and to the extent their disappearance contracts the transmission of fed policy the economy contracts. Therefore letting the banking function shrink wholesale makes no sense as some people recommend. Matter of fact since our financial sector has taken a beating so has our economy.
Greater point is that given our current system we need a reasonably capitalized banking system and that capital has to come from private investment and earnings or the federal government has to capitalize them directly and permanently which means you the taxpayer.
Our entire system was over leveraged so FR forced rates down to allow leverage ratios to come down including consumers and corporations and thereby help balance sheets recapitalize through business earnings and paychecks. Now they are keeping rates down to help reduce the cost of borrowing for the federal government as they have leveraged up to a very high degree to keep the economy growing......ostensibly. Not sure they think of that way but that is the reality. Borrow to fuel growth.
The problem is that our growth is anemic for a variety of reasons so getting out of this leveraged growth scenario is difficult. Corporate earnings can increase through cost cutting but they are not hiring and small businesses are overburdened and challenged with too many policies, too little credit, too much uncertainty and too many darts.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Worn out
With respect to taxes one false outrage of many on the left is the corporations do not pay money on foreign earnings and they leave those earnings in those regions/countries. What they are ignoring is the idea that other countries are sovereign and have their own tax laws that the US must respect or if not then let's just take over the world.
That false outrage is egocentric and embarrassing when explored in depth.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
Vol
Interesting you attack the messenger and his person and not the message. A sure sign you have nothing to offer and are just a political hack from the left I presume. Go back to HuffPo and since you seem so familiar with it Yahoo!
If I am wrong about a subject I am all ears. So far you have provided nothing of substance.
I have a great life and have done very well. And I have accomplished a lot more than you could possibly imagine. Frankly there are no little rooms in any of my homes. You must be talking from personal experience. Sorry to crush your narrow minded stereotype.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
Vol
It is apparent to me that I know more about this program than you do with your emotional non-factual statements.
Boomers and old folks will take out more than they put in by a long shot and they certainly cannot blame the younger generation if politicians they elected before this younger generation was even born did not handle this program with any wisdom. Only allowing the funds to be invested in treasuries is by law and that is something Boomers have had many decades to fix. But but definition they have had interest on their principal so your position is not factual. And what interest rate were you choosing anyways to get to the age of 82 to recover their investment plus interest?
I agree the SSA program should not be in the operating budget and the older generation has had forever to fix that problem too. But you would not like the results because actuarial mathematics would require cutting benefits right now to make it solvent going forward as they could not go to the operating budget to fund any future deficits.
Keep your SSA payments and pay your mom and dad directly versus foisting them off on the government.
SSA is racist, sexist and organized robbery in its current form. If you don't believe that then you really don't know what is going on.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Limiting contributions or doing away with them completely is likely the best. If there is no money to follow then all the corrupt people go away and what is left is people wanting to do the right thing.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
What will happen is that we will have 4 tiers of society in the working aged population. The first tier will be federal employees outside of the armed forces. They will make more on average than most people when all benefits are included and they are a large voting block. Second it will be educated knowledge workers who provide value with their thought leadership and education. They will make middle class to upper class wages. We will have a 3rd group that will work manual labor jobs and will do OK but will make much less than the first two groups. And we will have a 4th group that will not work at all as they don't have an education and don't want to work in the 3rd group. They want wages from 1 or 2 at minimum so will rather take welfare in all its various forms and are a big voting bloc than work in the 3rd group.
You see it now and it will continue. The uber rich will be another class that will be blamed for all of the above but as pointed out before it is a problem with worker skill sets that is really at the root of the problem.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Over time tax policies globally will converge as they are really just a cost on capital. They will converge the easy way or the hard way but they will converge. Globalization is a relentless force.
This idea that companies need to stay in the US take a lot for granted.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Greater point is that given our current system we need a reasonably capitalized banking system and that capital has to come from private investment and earnings or the federal government has to capitalize them directly and permanently which means you the taxpayer.
Our entire system was over leveraged so FR forced rates down to allow leverage ratios to come down including consumers and corporations and thereby help balance sheets recapitalize through business earnings and paychecks. Now they are keeping rates down to help reduce the cost of borrowing for the federal government as they have leveraged up to a very high degree to keep the economy growing......ostensibly. Not sure they think of that way but that is the reality. Borrow to fuel growth.
The problem is that our growth is anemic for a variety of reasons so getting out of this leveraged growth scenario is difficult. Corporate earnings can increase through cost cutting but they are not hiring and small businesses are overburdened and challenged with too many policies, too little credit, too much uncertainty and too many darts.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Concentrated wealth provides power. Decentralized wealth has no leverage. Does that explain the phenomena that you are observing?
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
With respect to taxes one false outrage of many on the left is the corporations do not pay money on foreign earnings and they leave those earnings in those regions/countries. What they are ignoring is the idea that other countries are sovereign and have their own tax laws that the US must respect or if not then let's just take over the world.
That false outrage is egocentric and embarrassing when explored in depth.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
Interesting you attack the messenger and his person and not the message. A sure sign you have nothing to offer and are just a political hack from the left I presume. Go back to HuffPo and since you seem so familiar with it Yahoo!
If I am wrong about a subject I am all ears. So far you have provided nothing of substance.
I have a great life and have done very well. And I have accomplished a lot more than you could possibly imagine. Frankly there are no little rooms in any of my homes. You must be talking from personal experience. Sorry to crush your narrow minded stereotype.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Your understanding of economics is limited. Keynesian economics has its limitations as well which is what you are espousing.
The following is a bizarre statement without some context. On its own it is not an axiom.
"it's a shrinking economy that creates debt."
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
It is apparent to me that I know more about this program than you do with your emotional non-factual statements.
Boomers and old folks will take out more than they put in by a long shot and they certainly cannot blame the younger generation if politicians they elected before this younger generation was even born did not handle this program with any wisdom. Only allowing the funds to be invested in treasuries is by law and that is something Boomers have had many decades to fix. But but definition they have had interest on their principal so your position is not factual. And what interest rate were you choosing anyways to get to the age of 82 to recover their investment plus interest?
I agree the SSA program should not be in the operating budget and the older generation has had forever to fix that problem too. But you would not like the results because actuarial mathematics would require cutting benefits right now to make it solvent going forward as they could not go to the operating budget to fund any future deficits.
Keep your SSA payments and pay your mom and dad directly versus foisting them off on the government.
SSA is racist, sexist and organized robbery in its current form. If you don't believe that then you really don't know what is going on.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Otherwise google it or look at WM's comment above.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
You are right. Government is looked at as the entity to solve everything but they create as many problems as they solve.
Had to laugh at the weather comment but that is also true.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
You see it now and it will continue. The uber rich will be another class that will be blamed for all of the above but as pointed out before it is a problem with worker skill sets that is really at the root of the problem.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Only solution I can think of is term limits.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]
Sometimes you are willfully ignorant. Heal thyself.
The U.S. Economy: How Did We Get Here? Where Are We Headed? [View article]