Hopefully Some Good Economic News That Will Last

[JohnT]

Originally posted by chegitz guevara
If we took deductions and exemptions into account, there would be less of a difference. I'll certainly be happy to take the money, but I dubt most of those families are gonna run out and spend this money. Either it will go in the bank or it will be used to pay down debt.

Essentially your argument boils down to this: I don't like what they're going to do with the money they work for, therefore it is best to appropriate their funds for endeavors that I think are reasonable.

Bravo! :clap hands:

[Lord Merciless]

Whether you put money in a bank, invest in some kind of securities, or buy a new car, the result is the same:

You put your money back into the economic system and someone is going to use your money to start a new endeavor. Whether that new endeavor will be successful depends on that someone's competence.

Do you really think that banks keep all their money in a vault? I really doubt it's more than 5%.

Someone working for Citicorp should really know that.

[Defiant]

Che,
If they are just going to save it or pay off debt, what is this statement about?

" Both Merrill Lynch and Goldman Sachs figure consumers spent about three-quarters of that money, far more than anyone expected and much more than after the 2001 tax cuts."

Sure looks like they are spending it, what do you think?

[chequita guevara]

Originally posted by Lord Merciless
Someone working for Citicorp should really know that.

I haven't worked there for over a year and a half. And just cuz the money goes into the bank doesn't mean it's being lent.

JohnT, your rephrasing of what I wrote is funny, but inaccurate. What I said was that's it's not "good news." It's just news. It remains to be seen what will be done with the money.

I would note, however, that these tax cuts are really government loans, since we will have to pay off the resulting deficit sooner or later (with interest). Or shall we just let our children's generation pay for it?

[chequita guevara]

Originally posted by Defiant
Che,
If they are just going to save it or pay off debt, what is this statement about?

" Both Merrill Lynch and Goldman Sachs figure consumers spent about three-quarters of that money, far more than anyone expected and much more than after the 2001 tax cuts."

You missed the part about "Right before back-to-school season began?"

[Defiant]

Che,
That doesn't matter, it will always be, "just before school", just before xmas, just after xmas sales, just before my girlfriends birthday, just before we take a vacation, the reasons get invented when you get your money.

[Defiant]

Che's Quote,
"I would note, however, that these tax cuts are really government loans, since we will have to pay off the resulting deficit sooner or later (with interest). Or shall we just let our children's generation pay for it?"

How about this note, business picks up, creates jobs, creates more taxpayers to help pay off the debt, also why does our FED gov't have to spend so much, lets take a detailed look at what they are spending it on, we all know there is mis-spending and knowing our gov't, probably a very high amount.

Cut costs, increase jobs, do not increases taxes, how about that for a motto.

[chequita guevara]

Maybe, maybe not. Let's wait and see.

Personally, it's good news for me, because it means I'll be able to afford a car. . . . unless Bunnygrrl makes me put it towards our party next year.

[Lord Merciless]

Originally posted by chegitz guevara


I haven't worked there for over a year and a half. And just cuz the money goes into the bank doesn't mean it's being lent.

Did you read my post at all? Of course banks have to keep some cash on hand just in case that some customers want to make withdrawals. But any person with at least a bit of economic wit knows it's foolish to let monies sit around uninvested.

[chequita guevara]

Originally posted by Defiant
How about this note, business picks up, creates jobs, creates more taxpayers to help pay off the debt, also why does our FED gov't have to spend so much, lets take a detailed look at what they are spending it on, we all know there is mis-spending and knowing our gov't, probably a very high amount.

Cut costs, increase jobs, do not increases taxes, how about that for a motto.

Damnit!!! Forum ate my post!!!

The Laffer curve has long since been disproved. Contrary to Conservative myth, the last two tax increases preiods of growth in the economy were preceeded by the Reagan and Clinton tax increases.

As for tax cuts, well, Bush senior's was by a recession. So was Bush juniors. We haven't had enough time to see what the effect of the 2003 Tax cut will be, but we know the effect of the current deficit has been to stop the drop in interest rates. We aso know that the two previous quarters of masive growth were followed by two or more quarters each of lackluster growth. It remains to be seen how the economy will respond. There are many contradictory indications.

Now, it's true I like to see the president look like the idiot he is, but not at my own expense, nor at the expense of my fellow Americans. I will probably looking for a job next quarter, and a surging economy will be helpful, as opposed to the hell it's been to find work since this idiot has been President.

[chequita guevara]

Originally posted by Lord Merciless
But any person with at least a bit of economic wit knows it's foolish to let monies sit around uninvested.

It's also foolish to invest money willy-nilly. Just cuz you have the money to loan or invest doesn't mean you have a place to put it. Or would you rather we go through the S&L debacle all over again. That little wonder of deregulation only cost the country one trillion dollars!

[Cruddy]

The UK experience of tax cuts over many years has changed. To start with they were very popular. When people realized that the govt wasn't maintaining public services and was selling everything to the highest bidder, the public decided that the govt spending the money was the best bet.

Else what do we vote for? For politicians who manage nothing, just sell off govt run services?

I suspect the US experience will be similar, with people getting disillusioned about the idea.

[Lord Merciless]

Originally posted by chegitz guevara


It's also foolish to invest money willy-nilly. Just cuz you have the money to loan or invest doesn't mean you have a place to put it. Or would you rather we go through the S&L debacle all over again. That little wonder of deregulation only cost the country one trillion dollars!

You are just twisting my arguments here. We talked about how reducing taxes would increase public spending and get economy going again. You *****ed about people putting money in banks and etc... Well, I appointed out that putting money in banks is also a way to spend the money, although indirectly.

So in that aspect, you were wrong. But instead of admitting you are wrong, you are digging out all kinds of stuff that have nothing to do with the core issue.

[chequita guevara]

Originally posted by Lord Merciless
I appointed out that putting money in banks is also a way to spend the money, although indirectly.

What I'm saying is, that isn't necessarily true. Putting the money in the bank is only indirectly spending if the bank can invest the money.

[Defiant]

Now Che,
Even though you are a communitst, you are smarter than that, Bush walked into the White House in January of 2001 and the crap hit the fan in March 2001, if there is a President you want to blame, you really need to look at Slick Willy. The so called jobs he created, you know, the ones in the high tech sector that had the NASDAQ near 5000 before it crashed to 1300, yea, he had a nice legacy. In any event, we all know the President, Slick Willy or Bush have little to do with the economy, that is mostly business's and Greenspan.

"Now, it's true I like to see the president look like the idiot he is, but not at my own expense, nor at the expense of my fellow Americans. I will probably looking for a job next quarter, and a surging economy will be helpful, as opposed to the hell it's been to find work since this idiot has been President."