I no longer believe in capitalism. At all.

[kentonio]

Human resources are among the most valuable on the planet. For many/most businesses, human resources represent a huge majority of the operating cost.

So what? At the heart of it all is the fact that those people exist regardless of their employment and each need to be housed and fed and to receive healthcare and clothing and etc, etc, etc. By a huge part of business cost going to the employee that means that those people are able to support themselves and by doing so invest back into other peoples livelihoods in a vast cycle.

[Ben Kenobi]

What makes you think Jaguar doesn't actually want good things to happen to poor people? Or that his policy proposals are driven by personal greed? Do you have anything other than stereotyping of Republicans to base this on?

Given that I'm (according to Asher), the stereotypical 'poor person', here on Apolyton, why on earth do I love what Jag's been posting? Methinks the well off socialists here believe they 'understand' the poor the way Stalin 'understood' the Ukranians.

[Kidlicious]

The funny thing is that it doesn't matter if you tax the rich on their consumption, because it isn't going to change their spending habits. All you will have done is lower their tax bill substantially. I mean really, you all are making one of the stupidest arguments I've ever heard.

[Jaguar]

There is a vastly higher demand for cleaning products than there is for expensive cars. Isn't supply and demand already keeping that cost down?

If many wealthy people reduce their funding for consumer goods factories, that's a supply-side shock to consumer goods industries, which results in a higher price of consumer goods and a lower equilibrium quantity produced. Just normal Econ 101 here, nothing fancy.

I just really don't see why we would want the market to go completely in either direction. Without luxury goods there is less incentive for wealth creation, and without affordable basic goods, the poor get ****ed.

We don't, but at the margin, I'd rather have a few more supermarkets and fewer Porsche dealerships. Wouldn't you?

Why not just tax on income and let people spend their money how they see fit?

In practice, income taxes have been instituted poorly and discourage saving relative to consuming.

[Jaguar]

I guessed that you'd refer to human resources, but to me there is a world of difference between human and material resource. Although nothing is infinite, human time and effort is at least renewable. Human time translates into wages which then feed back into the economy, surely this is a great direction for consumer spending to take? The housing and food those workers need are paid for by the worker using the money they receive for their work. That then pays for builders and farmers etc to sustain themselves. How is this not a positive?

You really, really want me to buy that Porsche, don't you?

[Ben Kenobi]

The funny thing is that it doesn't matter if you tax the rich on their consumption, because it isn't going to change their spending habits.

Yet you believe that consumption taxes will change the spending habits of poor people? Yes, changing the way taxation works will have dramatic effects on how people choose to spend their money. Encouraging people to save through consumption taxes will have a significant effect. Rich or poor.

[Ben Kenobi]

You really, really want me to buy that Porsche, don't you?

[kentonio]

If many wealthy people reduce their funding for consumer goods factories, that's a supply-side shock to consumer goods industries, which results in a higher price of consumer goods and a lower equilibrium quantity produced. Just normal Econ 101 here, nothing fancy.

Sorry I'm probably being dim here, but where is this reduction in funding in relation to? Which consumer goods?

We don't, but at the margin, I'd rather have a few more supermarkets and fewer Porsche dealerships. Wouldn't you?

Not really, do we have a shortage of supermarkets?

In practice, income taxes have been instituted poorly and discourage saving relative to consuming.

I'd agree that income taxes have often been instituted poorly as they usually go hand in hand with a bloated tax code, but in terms of their discouraging saving, surely that should be something left to the determination of the individual? By taxing consumption heavily, surely you are punishing choice rather than incentivising saving?

[kentonio]

You really, really want me to buy that Porsche, don't you?

Yes.

[Kidlicious]

Yet you believe that consumption taxes will change the spending habits of poor people? Yes, changing the way taxation works will have dramatic effects on how people choose to spend their money. Encouraging people to save through consumption taxes will have a significant effect. Rich or poor.

Yes, I believe that consumption tax would change the spending hapits of the poor, because they will have less money to spend. The rich won't care. Let me put it this way, the rich do not generally go without. They aren't like us dude.

[Jaguar]

Sorry I'm probably being dim here, but where is this reduction in funding in relation to? Which consumer goods?

To explain what happens if I (and several other people like me) withdraw money from capital markets to buy Porsches, I have made a helpful diagram!!111

[Ben Kenobi]

Jaguar, why are you sharing secrets!

You're supposed to charge an arm and a leg!

[Ben Kenobi]

Yes, I believe that consumption tax would change the spending hapits of the poor, because they will have less money to spend. The rich won't care. Let me put it this way, the rich do not generally go without. They aren't like us dude.

Why do you think I want to become one? I love where I am right now, but I'm greedy. I want a wife, kids, a decent house and a good job. I want it all.

[Kidlicious]

Why do you think I want to become one? I love where I am right now, but I'm greedy. I want a wife, kids, a decent house and a good job. I want it all.

You can't serve two masters.

[kentonio]

To explain what happens if I (and several other people like me) withdraw money from capital markets to buy Porsches, I have made a helpful diagram!!111

[ATTACH=CONFIG]172523[/ATTACH]

Why would the Porsche price climb with a higher demand? Would it not be the other way around?

Also, isn't that money you are putting into the Porsce workers then being invested back into consumer products by the workers? What about the money that the Porsche owners make? Is that not being further invested into other equity or luxury and consumer goods?