Halftime in America

[Ricter]

Quote from achilles28:

No, but there was an implosion from a FED-induced real estate bubble which caused people to mortgage and speculate their futures, to which they lost, and are still on the hook for the debt. Hence, the reduction in consumption, from which most wages (of those employed) are directed towards paying down mortgage debt (which is destroyed by banks), instead of being spent into the real economy, to generate economic activity.

So for today, if we lower taxes and regulations, business will have enough cash to start hiring and, when the consumer is done deleveraging, the sales will follow?

 

[Brass]

Quote from achilles28:

No. You're mistaken about the process. I already explained it:

Entry barriers come down (taxes and regulation) > more competition enters the market > prices come down > wages stay the same > consumers buy more per dollar spent = living standards go up.

Quote from achilles28:

...Yes, lower regulation (Glass Stegal) was a big culprit...

Do let us know when you come to a decision.

 

[Brass]

Quote from achilles28:

...Government intervention (the Greenspan Put)...

This just in:

http://www.save-a-patriot.org/files/view/frcourt.html

http://www.slate.com/articles/news_and_politics/explainer/2008/09/is_the_fed_private_or_public.html

But if it eases your mind any, I was not a fan of Greenspan or his easy-money-at-the-wrong-time policy.

 

[achilles28]

Quote from Brass:

As a matter of policy, I do not answer rhetorical questions.

This is why nobody takes you seriously.

Just answer the question.

1) If the Government taxed 90% of your wages, would you still work?

2) If Government taxed 10% of your wages, would still work?

3) Under what condition would you work harder and longer? 1 or 2?


If you won't answer that, you're intellectually dishonest and there's no point continuing this discussion.

 

[Tsing Tao]

Quote from CaptainObvious:

Interesting video, but we all know where the new playbook was written, now don't we. Corporate boardrooms first, then co-signed by congress.

Did you even listen to the last 20 seconds?

 

[Tsing Tao]

Quote from achilles28:

there's no point continuing this discussion.

My advice, put said person on ignore like I did. You're just wasting your breath as they will never engage you on any fact based argument.

 

[achilles28]

Quote from Brass:

Do let us know when you come to a decision.

This is nonsense.

The biggest culprit is moral hazard. The Greenspan put. That's why Banks geared themselves to the level they did. Bailouts are Government intervention of the highest order.

Under any economic system (high regulation/tax / or low regulation/tax), bubble and busts happen. But they happen with much greater frequency and magnitude under systems with high regulation/fractional reserve banking.

Again, you're off topic. Please stay on topic.

 

[Brass]

Quote from achilles28:

This is why nobody takes you seriously.

Just answer the question.

1) If the Government taxed 90% of your wages, would you still work?

2) If Government taxed 10% of your wages, would still work?

3) Under what condition would you work harder and longer? 1 or 2?


If you won't answer that, you're intellectually dishonest and there's no point continuing this discussion.

And so you're this "nobody?" I'm okay with that.

You have no concept of the real world, which fortunately operates somewhere between your absurd extremes. Life is about balance. Get some.

 

[Brass]

Quote from Tsing Tao:

My advice, put said person on ignore like I did. You're just wasting your breath as they will never engage you on any fact based argument.

Right. I present real world historical examples via the links while your guy speaks in imaginary hypotheticals, and I'm the one who's lacking a fact-based argument? Yes, please do continue to keep me on ignore and be sure to tell all your friends.

 

[achilles28]

Quote from Ricter:

So for today, if we lower taxes and regulations, business will have enough cash to start hiring and, when the consumer is done deleveraging, the sales will follow?

No, man. If we lower taxes and regulation, the breakeven point for business becomes lower, more business are started (profit-motive), more goods are produced, prices drop, consumers buy more for every dollar spent = living standards go up. That assumes all other things are equal.

So given todays environment, if we dropped taxes and regulation tomorrow, more jobs would be created and prices would drop *RELATIVE TO* had we kept regulations and taxes where they are today.

See? We're comparing two identical economic environments, but changing only 1) Taxes and 2) Regulations.