Originally posted by OneFootInTheGrave
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Warren Buffet speaks common sense; alarms most Republicans
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Originally posted by Jaguar View PostGiving people more money doesn't make bread appear. There's still the same amount of bread in the country as there was before you taxed Warren Buffett.Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"
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Originally posted by Kuciwalker View PostThe government can achieve precisely the same end by just printing dollars and then giving them to people. The "tax Warren Buffet" step is completely unnecessary and irrelevant.Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"
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What becomes unbalanced when the government prints more dollar bills?
protip: it does this all the time. The total quantity of dollar bills in circulation (+ bank reserves blah blah blah) has been increasing pretty much constantly since the US dollar was established. Necessarily so, because we have more people and more exchanges so we need more dollars to facilitate those exchanges.
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The total quantity of dollar bills in circulation (+ bank reserves blah blah blah) has been increasing pretty much constantly since the US dollar was establishedScouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!
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Originally posted by OneFootInTheGrave View Postwell if there is increased demand... someone may think that opening a bakery is a good idea, so the bread appears.
There are two components to this happening. You need someone to pay for the bread, and someone to pay for the bakery. Warren Buffett mostly pays for bakeries, and we need that part to happen. Other people need to pay for the bread, and we need to happen too.
In the long run, our society becomes more productive by creating the bakeries. In the short run, printing money is the way to get more people to buy the bread."You're the biggest user of hindsight that I've ever known. Your favorite team, in any sport, is the one that just won. If you were a woman, you'd likely be a slut." - Slowwhand, to Imran
Eschewing silly games since December 4, 2005
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Jag:
There's also Ag demand. Long and short of it, they can add value to the sale of bread (through bakeries), or they can add to the overall harvest of wheat. The former is more likely to happen than the latter, because of the wheat oversupply at present. It would take a long time before we'd expect to see wheat harvests go up in response to demand.Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!
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Originally posted by Kuciwalker View PostWhat becomes unbalanced when the government prints more dollar bills?
protip: it does this all the time. The total quantity of dollar bills in circulation (+ bank reserves blah blah blah) has been increasing pretty much constantly since the US dollar was established. Necessarily so, because we have more people and more exchanges so we need more dollars to facilitate those exchanges.Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"
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Originally posted by Jaguar View PostNow we're getting somewhere.
There are two components to this happening. You need someone to pay for the bread, and someone to pay for the bakery. Warren Buffett mostly pays for bakeries, and we need that part to happen. Other people need to pay for the bread, and we need to happen too.
In the long run, our society becomes more productive by creating the bakeries. In the short run, printing money is the way to get more people to buy the bread.Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"
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OFITG:
Who do you think has the capital to start and operate the bakery?Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!
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Originally posted by OneFootInTheGrave View Postthis issue is off course when the gov prints too much money... as has been happening, skewing the investments made... too much easy money makes you invest poorly... what is the "correct" amount of extra "printing" is open to interpretation, but it is pretty clear that the US gov is on "too high" side of it, at the moment, and has been for at least past 10 years... with that printing it was supporting lots of frivolous investment, which did not result in net job gains for the US economy, and relevant growth... so we are where we are, but that has nothing to do with transfer of tax receipts from the poor/middle to the upper classes...
When the government prints too many dollars the result is too much inflation. Inflation, however, has been substantially below average since 2008, and inflation expectations (as measured by the difference in the rate of return on normal US bonds, and the US bonds whose returns are indexed to inflation) are also below average.
I can provide a more thorough justification of this claim later (after work), as well as provide links to economists much smarter and more knowledgeable than I who can explain it even better.
edit: important, key point: Inflation is popularly considered to be a rise in the prices people pay at retail. However, properly speaking inflation is a rise in all prices, including wages. Thus if you cause inflation to rise you actually make it easier for people to pay off their mortgages and credit cards, and if you cause inflation to fall you make it harder. The fall in the rate of inflation since 2008 has exacerbated the problems in the housing market by making the real burden of people's debt larger.Last edited by Kuciwalker; August 16, 2011, 13:10.
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Originally posted by Jon Miller View Post
The reason why a lot of money is 'sitting around' right now is because money is mostly in the hands of the capitalists and not the poor/middle class consumers.
JMA lot of Republicans are not racist, but a lot of racists are Republican.
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Equal enforcement of already existing tax laws and rates in US is a joke.
I wonder how much of our debt could be taken care of, if the IRS actually compelled all the wealthy to pay not more taxes, but taxes at even the lower rates they are legally required to pay now?A lot of Republicans are not racist, but a lot of racists are Republican.
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The ratio was kept pretty much fixed. In fact if you look at the ratio wrt population of the US, that stayed fixed too, up until the early 80s. It's only been since 82 that the presses really ran ahead and started devaluing the dollar.Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!
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