Originally posted by Al B. Sure!
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Are the rich paying their 'fair' share?
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With or without religion, you would have good people doing good things and evil people doing evil things. But for good people to do evil things, that takes religion.
Steven Weinberg
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I still want an answer from Jaguar. He might miss this if he sees this thread is now about 'Booty Warriors'
My question is why does this change the demand curve and not the supply one? I would think the reduction in returns would make the supply curve shift to the left because investors would be discouraged from lending and would require higher returns for the same quantity supplied. Interest rates would therefore go up while quantity of loans will decrease.
Or could they both shift a certain amount relative to the taxation levels and consequently reduce the quantity even more but have a more or less same interest rate, depending on the disparity between the tax rates?"Flutie was better than Kelly, Elway, Esiason and Cunningham." - Ben Kenobi
"I have nothing against Wilson, but he's nowhere near the same calibre of QB as Flutie. Flutie threw for 5k+ yards in the CFL." -Ben Kenobi
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Originally posted by Al B. Sure! View PostI still want an answer from Jaguar. He might miss this if he sees this thread is now about 'Booty Warriors'
My question is why does this change the demand curve and not the supply one? I would think the reduction in returns would make the supply curve shift to the left because investors would be discouraged from lending and would require higher returns for the same quantity supplied. Interest rates would therefore go up while quantity of loans will decrease.
Or could they both shift a certain amount relative to the taxation levels and consequently reduce the quantity even more but have a more or less same interest rate, depending on the disparity between the tax rates?
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Originally posted by Al B. Sure! View PostThis is a really good explanation. I'm going to use your post elsewhere but add some further explanations for those who have difficulty understanding supply and demand curves.
My question is why does this change the demand curve and not the supply one? I would think the reduction in returns would make the supply curve shift to the left because investors would be discouraged from lending and would require higher returns for the same quantity supplied. Interest rates would therefore go up while quantity of loans will decrease.
The position on the vertical axis where green #1 intersects orange #2 is the interest rate received by lenders after imposition of the tax (they receive something less than 5%). The position on the vertical axis where green #2 intersects orange #1 is the interest rate paid by borrowers (they pay something more than 5%). The difference is the amount of interest that is paid in tax.
Both graphs are "true" in that they show you the same answer for how quantity of investment changes; they just show you prices (interest rates) from different perspectives, lender and borrower.
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Originally posted by Kuciwalker View PostTake Jaguar's orange curve #1 and intersect it with a new green curve #2 (that is the original green curve shifted left). Draw green curve #2 so that it intersects orange curve #1 directly above where green #1 intersects orange #2 (because regardless of where we collect the tax, from the lender or borrower, the economic effect is the same so the quantity of investment must be the same).
The position on the vertical axis where green #1 intersects orange #2 is the interest rate received by lenders after imposition of the tax (they receive something less than 5%). The position on the vertical axis where green #2 intersects orange #1 is the interest rate paid by borrowers (they pay something more than 5%). The difference is the amount of interest that is paid in tax.
Both graphs are "true" in that they show you the same answer for how quantity of investment changes; they just show you prices (interest rates) from different perspectives, lender and borrower.
Thank you for the clarification."Flutie was better than Kelly, Elway, Esiason and Cunningham." - Ben Kenobi
"I have nothing against Wilson, but he's nowhere near the same calibre of QB as Flutie. Flutie threw for 5k+ yards in the CFL." -Ben Kenobi
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Well the tax paid may not be exactly 1%. The model isn't specified enough for us to know exactly what the new prices are; we just know that 0.8 * (interest the borrower pays) = (interest the lender receives). So if the new price the borrower pays is 5.5% then the lender will receive 4.4% and the taxes paid will be 1.1%.
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Originally posted by Kuciwalker View PostWell the tax paid may not be exactly 1%. The model isn't specified enough for us to know exactly what the new prices are; we just know that 0.8 * (interest the borrower pays) = (interest the lender receives). So if the new price the borrower pays is 5.5% then the lender will receive 4.4% and the taxes paid will be 1.1%."Flutie was better than Kelly, Elway, Esiason and Cunningham." - Ben Kenobi
"I have nothing against Wilson, but he's nowhere near the same calibre of QB as Flutie. Flutie threw for 5k+ yards in the CFL." -Ben Kenobi
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Originally posted by Hauldren Collider View PostBut are you starving or malnourished? Look, your situation sucks a lot, and you still have food, shelter, internet, smartphones, and a CAR. I'm not saying you should be content but JM going all chicken little with starving children is horse****.
There are so many others out there who are homeless or are going hungry and are either under employed too, or do not have any job.
EDIT: Yeah, I do have a car and it's paid for, but it's a '99 Chevy Lumina.A lot of Republicans are not racist, but a lot of racists are Republican.
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I have a '96 Toyota Tacoma that has the clutch cylinders out, the A/C has a leak and the front windshield is cracked. I love that truck.Life is not measured by the number of breaths you take, but by the moments that take your breath away.
"Hating America is something best left to Mobius. He is an expert Yank hater.
He also hates Texans and Australians, he does diversify." ~ Braindead
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Originally posted by SlowwHand View PostI have a '96 Toyota Tacoma that has the clutch cylinders out, the A/C has a leak and the front windshield is cracked. I love that truck.No, I did not steal that from somebody on Something Awful.
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