Sorry, Folks, Rich People Actually Don't 'Create The Jobs'

Discussion in 'Too Hot for Swamp Gas' started by philnotfil, Nov 30, 2013.

  1. dangolegators

    dangolegators Well-Known Member

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    It all starts with demand. Supply side doesn't work. There's no point in stimulating supply when there is no demand.
  2. gatorman_07732

    gatorman_07732 Well-Known Member

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    That's the obvious but not what the OP is asking,
  3. fubar1

    fubar1 Premium Member

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    Innovation is what drives economic growth. However we get there is another discussion.

    But this economy has struggled because there's not been the next big thing. The world's economy was in the doldrums until the industrial revolution. WWII and the rebuilding of Europe was another catalyst several decades later. And the internet boom was another.

    The U.S. has a chance to push forward with energy independence in the absence of the next big thing, but we're struggling to get out of our own way in that area.
  4. dangolegators

    dangolegators Well-Known Member

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    Yes it's obvious that policies that favor the wealthy, like lower capital gains taxes and lower top end marginal income tax rates don't work. Glad you agree.

    To stimulate demand, you need programs that favor the middle and lower classes. But that's all stuff that conservatives hate.
  5. gatorman_07732

    gatorman_07732 Well-Known Member

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    If that was the case, this economy would be off the charts thriving right now.
  6. GatorFanCF

    GatorFanCF Premium Member

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    Sorry, maybe someone can enlighten me how 9,000 folks with an extra 1,000 makes the economy work better than the guy who spends (say) 6,000,000 then puts the balance in the bank.

    Oh, wait, I get it: the guy with $9 million pays about $2,000,000 in taxes; so, there's that 20% waste into the Federal Treasury for things like websites and green jobs and navigators. Got it.
  7. dangolegators

    dangolegators Well-Known Member

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    The guy with 9 million spends 6 million on an overseas venture, with the remaining 3 million in the bank. The 9000 folks with an extra $1000 spend all of it in the US.
  8. dangolegators

    dangolegators Well-Known Member

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    Mitt Romney's 100 million dollar IRA isn't doing a whole lot to stimulate the US economy. One hundred thousand people with an extra thousand dollars in their pocket does. People who don't need more money don't spend it. Our economy is dependent on people spending money.
  9. gatorman_07732

    gatorman_07732 Well-Known Member

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    So Dan, is what your saying is Obama's policies favor the rich? I'm confused where you're coming from because we're going on 6 years now with is policies.
  10. urg8rbait

    urg8rbait Member

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    ... and without supply you can't demand anything. In order to demand/buy anything you must first produce something that someone is willing to pay you for so that you can pay for your demands. In other words, you have to produce before you can consume.

    So, how do we increase demand you ask? Encourage people to produce things people want.
  11. urg8rbait

    urg8rbait Member

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    Uhhh... everyone demands something all the time. But in order for someone to demand they must first supply something in order to get the money to pay for their demands.
  12. urg8rbait

    urg8rbait Member

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    You think the money that isn't spent is just sitting idle until people's mattresses? Absolutely not! They are in savings/investment accounts that are in turn lent out for businesses to innovate, invest, etc.. in the economy. The more money that is saved in banks by savers, the more money is available to be lent out which ends up lowering the interest rates (aside from the fact the Fed Res influences the rates).
  13. urg8rbait

    urg8rbait Member

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    Then it sounds like the US has non-favorable economic policies for domestic producers (and hirers of labor) to stay domestic. Let's talk about what the US government can do to encourage these businesses to stay and invest here.
  14. dangolegators

    dangolegators Well-Known Member

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    Right now demand is the issue. Corporations are sitting on plenty of cash. They have money to innovate, invest, etc. But there's not much interest in expanding production when demand is low.
  15. dangolegators

    dangolegators Well-Known Member

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    'Favorable' is a relative term. Sure production costs are cheaper in countries where labor laws are nonexistent and pollution is the norm. But we don't necessarily want to emulate countries like that, do we?
  16. dangolegators

    dangolegators Well-Known Member

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    The fact that they demanded something in the first place is what created the motivation for them to supply something. I'm hungry, therefore I work. It's not the other way around.
  17. OklahomaGator

    OklahomaGator Moderator VIP Member

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    Programs that favore the middle and lower classes like extended unemployment benefits, increase the number of people receiving SNAP benefits, have a two year payroll tax reduction, increase the minimum wage. I think we have tried all of those and we can see how well they have worked.

    How about an investment tax credits like Reagan did in the early 80's? That worked, why dont we try that again.
  18. dangolegators

    dangolegators Well-Known Member

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    That conservatives use words like 'mediocrity' to describe the middle and lower classes is why they will continue to lose national elections.
  19. gatorman_07732

    gatorman_07732 Well-Known Member

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    Come on dan, this thread is way off track
    Last edited: Nov 30, 2013
  20. dangolegators

    dangolegators Well-Known Member

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    Seems like it's pretty on track to me. We're talking about supply and demand, producers and consumers, which is what the OP was about.

    What track do you proclaim it to be on?

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