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A summary of trickle down economic theory:

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  • I am very thankful that you're not running the show.


    As are we all, Arrian . I've been having this argument with him for months... that you need savings to invest, but he just can't understand that... if you can do it, you are a better man than I .
    “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
    - John 13:34-35 (NRSV)

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    • Originally posted by DAVOUT
      Considering the US balance of foreign trade, one could believe that consuming more than 100% of your production has already been achieved.
      That maybe so. The trade balance results in borrowing. The imbalance is the result of the wealth in the US. Consuption always spurs investment though so there is always enough investment. It's the invisible hand
      I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
      - Justice Brett Kavanaugh

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      • Originally posted by Kidicious
        Man, the companies are shipping out all the jobs they can now. There would be absolutely no increase because of the a wealth tax.
        Incorrect. Companies are shipping out jobs where doing so gives them a likely net advantage. An asset tax encourages that even further.




        Here's the way it works. Cutting working peoples taxes increases their disposable inome. More income means economic growth. Right?
        No, the way it works is that more income may contribute to economic growth, or it may just contribute to inflation if income increases faster than production. Unless you like greater imports and ever larger trade deficits. Since you're taxing capital formation, production will not grow in your system beyond existing facilities (maybe) increasing output up to present capacity.
        When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."

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        • Originally posted by MichaeltheGreat
          Debt driven investment is insane. (Oh, and try to raise significant amounts of capital that way without equity, )
          It's called the financial system. It's how you and I get a return for our savings. Because someone borrows it to invest.
          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
          - Justice Brett Kavanaugh

          Comment


          • Originally posted by MichaeltheGreat
            The crawdad principle. (If you catch one crawdad and put it in a bucket, it'll crawl out, but if you put two in a bucket, as soon as one's about to crawl out, the other one will grab it's tail.

            A large percentage of people who grow up in a "poor" environment fit that mold precisely - they rationalize excuses for their failures, and actively undermine anyone who tries to do better. However, you're talking about a sociological defect, not a lack of economic opportunity. Tax policy won't help dumbasses - they'll just spend anything extra on lotto tickets, Marlboros or Kools instead of generics, and useless crap. People have to decide whether they want to subscribe to that sort of defeatist mentality or not.
            Creating more opportunity for the poor will change things. Then they will see success as obtainable.
            I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
            - Justice Brett Kavanaugh

            Comment


            • Originally posted by Kidicious


              That maybe so. The trade balance results in borrowing. The imbalance is the result of the wealth in the US. Consuption always spurs investment though so there is always enough investment. It's the invisible hand
              So your statement about famine is wrong, or we move from famine to wealth when we broke the 100% limit ?
              Statistical anomaly.
              The only thing necessary for the triumph of evil is for good men to do nothing.

              Comment


              • Originally posted by MichaeltheGreat
                No, the way it works is that more income may contribute to economic growth, or it may just contribute to inflation if income increases faster than production. Unless you like greater imports and ever larger trade deficits. Since you're taxing capital formation, production will not grow in your system beyond existing facilities (maybe) increasing output up to present capacity.
                There would be a short period of inflation and increased trade deficit. After the adjustment everything will be smooth.
                I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                - Justice Brett Kavanaugh

                Comment


                • Originally posted by DAVOUT


                  So your statement about famine is wrong, or we move from famine to wealth when we broke the 100% limit ?
                  The difference is that the US has no problem getting the necessary investment.
                  I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                  - Justice Brett Kavanaugh

                  Comment


                  • Originally posted by Imran Siddiqui
                    I am very thankful that you're not running the show.


                    As are we all, Arrian . I've been having this argument with him for months... that you need savings to invest, but he just can't understand that... if you can do it, you are a better man than I .
                    You don't know what the financial system is either
                    I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                    - Justice Brett Kavanaugh

                    Comment


                    • A Wealth tax would would be counter productive. Besides, the gov. doesn't need any more money.
                      Monkey!!!

                      Comment


                      • Originally posted by Kidicious


                        The difference is that the US has no problem getting the necessary investment.
                        I understand, your whole system can only work in the US. It is a good news for all other countries!
                        Statistical anomaly.
                        The only thing necessary for the triumph of evil is for good men to do nothing.

                        Comment


                        • You don't know what the financial system is either


                          Seeing how everyone is against you, perhaps you are the one who doesn't know what the financial system is?
                          “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
                          - John 13:34-35 (NRSV)

                          Comment


                          • Originally posted by Kidicious


                            It's called the financial system. It's how you and I get a return for our savings. Because someone borrows it to invest.
                            If they do it without adequate equity, they're playing Polish roulette. Project finance in the US typically requires 20-30 percent equity, SEC margin caps are there for a reason, etc. Overleveraging is unsound in the extreme - remember the good ol' collapse of the junk bond bubble? In your system, since you tax assets and encourage capital flight, you would force overleveraging, or the always available alternative of investing elsewhere.
                            When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."

                            Comment


                            • Originally posted by Kidicious


                              Creating more opportunity for the poor will change things. Then they will see success as obtainable.
                              Losers will always find a way to lose. People who don't see success as attainable now aren't going to see it because they have some extra spending money every two weeks.

                              You choose whether you see success as attainable or not, just as you choose what role models you'll follow, if any, etc.
                              When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."

                              Comment


                              • Originally posted by DAVOUT


                                I understand, your whole system can only work in the US. It is a good news for all other countries!
                                Hey, how do you like Auerstadt? I might be looking for someplace to move my business.
                                When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."

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