How taxes on the rich destroy jobs

Aug 26, 2005
16,771
4
#21
Why am I debating this?

1) you can live without a car very easily, specially if other means of transport are available. A kid in Manhattan as an example can grow up with never driving a car and nothing will happen. A kid growing up in Manhattan however who isn't provided with the necessary education...well...I really don't know about that. One is a luxury, could be necessary but not really, consumption etc. product. the other is a necessity, not-for-profit at least not directly thing.
Institutional education is not a necessity. Well, it is as much of a necessity as cars are. One could also create a context - a kid in a rural farm - where higher education is irrelevant to his life. But necessity isn't the point. You want me to mention 100 other things? Paper - yes, paper, that you have text books written on; computers; phones...do I have to go on? In fact, the irony is that if you deem such a product not a necessity - which limits its pool of buyers and restricts the industry's chance of lowering costs - then it is a great way of showing a frivolous, expensive, contraption was brought down to the point where any man could basically buy it.

Education is not an area that screams for government intervention. It existed long before government, it exists now alongside government subsidised education and it will exist long after. Your argument that not everyone had education stemmed from it's cost. Like many things, at one point the cost of attaining that thing means it is less available to one segment of society over another. It doesn't mean that without government intervention these costs aren't lowered. There are far bigger factors involved.

But Education, especially these days, is a staple of human life. Which private initiative wouldn't provide education services when you have so many people demanding it? As I asid, it already exists alongside public schools. This is not a contentious argument at all.

2) Aehm, I really don't know...schools were over 90% provided by the public, the other 10% are divided between churches and philanthropy, at least worldwide. In the US there are charter schools which until today I really don't know how they work but...YES? At least given that around 90% of the world's population went through a public school system that would be the point of it.
Besides, school is not about money but about incentives. There are enough experiments in the US as an example that try to improve incentives for both students and teachers to be better and it actually works. And incentive is the key..
I don't understand your argument. The fact that a lot of countries implement public schools and tax the citizen which yields a high percentage of graduates from those institutions does not facilitate an argument for the necessity of the government in this sector. In the absence of those schools or with the privatisation of those schools, you'll still have graduates. As long as higher education is needed, it'll be sought after and provided for.

I am not sure what you are talking about when you say school is not about money. If it relates to cost, then yes school is about money. For no matter how
virtuous you deem public schooling to be, if it costs too much the country can't afford it. That's not really the issue though because education doesn't require the kind of capital to justify huge spending. Which is kind of the point when people point to the increasing size of the DoE and falling grades.

3) 70 years ago cars were not a mass product yet, just as the internet wasn't. Hence the argument that not everyone had internet is just as relevant to this discussion as not everyone had a car.
Years ago education wasn't a big want or need either. Industrialisation and people moving from agricultural sectors into towns provided the need and want for more education. Formal education, even amongst the rich, years ago was often seen as superfluous. It goes without saying that things have to work in concert for the necessity of having something to move it from something a few have to something a lot of people have.

In the end it benefits industry to have higher qualified and more knowledgable people. If people could get high paying jobs which required a minimum of education a lot of people wouldn't go into school. So the demand for education is more important than who supplies it. Again, it will exist regardless of whether government provides it or not.

Your Ayn Rand fantasy is working so well in Somalia. No gubment, no taxes, bidness thrivin'. If we had your way we would all be pirates. In retrospect, here is a hilarious article from 2001.
http://www.theatlantic.com/past/docs/issues/2001/05/maass.htm

If we had appropriate regulations against tax cheats doing business in America, none of them would ever dare thinking about taking their money elsewhere. Here is a fact, even if our tax rate for the super rich was 50%, all the capitalists in Australia would still want to come to America to do their business because despite the republican assault on the middle class, there is still no society with as much disposable income as America's. You would have to be a complete fool not to want to do business here. The shame is, without Reagan voodoo economics, we could have had a much greater edge today.
With all due respect, as soon as I hear someone mention Ayn Rand or Somalia I think they read too many articles from Huff Post and they probably don't know what they're talking about. The philosophies of free markets and liberty are far older than Rand and I don't think all the way consistent with hers either. No one is pushing for anarchy also - which is what Somalia basically was. In the kind of society I and many others push for, the government has to exist. It has to provide the environment where consenting people can get together to meet each other's wants or needs without hurting someone else. The courts have to exist to settle the disputes between people - as fraud and misrepresentation may occur through contract, or criminal activity in general - and the police have to exist to be able to exercise the force of law.

Reagan's voodoo economics is basically what Obama is doing now. So unless you're trying to contradict yourself you're mistaken, and very badly. Reagan was responsible for one of biggest expansions in government in US history - does that sound like 'no gubment' to you? I don't think so.

[video=youtube;HrgckWNgNgE]http://www.youtube.com/watch?v=HrgckWNgNgE[/video]
 
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Oct 18, 2002
7,941
0
704 Houser
#22
With all due respect, as soon as I hear someone mention Ayn Rand or Somalia I think they read too many articles from Huff Post and they probably don't know what they're talking about. The philosophies of free markets and liberty are far older than Rand and I don't think all the way consistent with hers either. No one is pushing for anarchy also - which is what Somalia basically was. In the kind of society I and many others push for, the government has to exist. It has to provide the environment where consenting people can get together to meet each other's wants or needs without hurting someone else. The courts have to exist to settle the disputes between people - as fraud and misrepresentation may occur through contract, or criminal activity in general - and the police have to exist to be able to exercise the force of law.

Reagan's voodoo economics is basically what Obama is doing now. So unless you're trying to contradict yourself you're mistaken, and very badly. Reagan was responsible for one of biggest expansions in government in US history - does that sound like 'no gubment' to you? I don't think so.

[video=youtube;HrgckWNgNgE]http://www.youtube.com/watch?v=HrgckWNgNgE[/video]
With all due respect, whenever I hear the "redistribution of wealth" I think of Republican catch phrases and the millions of buffoons who listen to talk radio and don't have a single original thought in their brain. Unfortunately for you, Somalia is the closest thing to libertarian ideal we have seen in the last 100 years and it was an epic failure. So whenever you go "Joe the Plumper" on us I will bring up Somalia. And no Reagan's vooodoo economics was exactly the opposite of what Obama believes. You still haven't understood what the video was about. You are all hung up on deficit and deficit spending. That wasn't what this topic was about.
 
Aug 26, 2005
16,771
4
#23
Not really, the closest and arguably best example is America from the 19th and early 20th century. It was largely a laissez-faire society and one of the biggest periods in economic growth and improvement in the lot of man - as Friedman loves to tout.

No, Obama and Reagan are pretty much the same. He pretty much admitted to it. He joked that since he is a socialist, so is Reagan because he is effectively making the same considerations. They are both expanders of government and use it as a mechanism to advance social change.

If Reagan were what he touted to be - an Austrian, a free marketer and for small government - then you wouldn't be reading these articles by the Austrians themselves, then at the time:
http://mises.org/freemarket_detail.aspx?control=488
http://mises.org/daily/1544

I am sure a lot of those programs will remind you of recent ones. The video is about the role of government. Key word being government, and not lack of - i.e. Anarchy, like Somala.
 

IPride

National Team Player
Oct 18, 2002
5,885
0
Toronto, Canada
#24
I can tell economics is not something you studied in University and your ideas are just products of maybe a couple of books here and there and emotions running through your system.

On the demand vs. supply issue - I'm talking about the economic issues we are having today and not the ones we had in the 70s which were supply driven.
Why have interest rates (across the globe) remained at near zero levels for the past three years without creating inflationary problems and tell me whether the WORLD (not only the US) is having a supply problem or a DEMAND one.

As for Keynesian fantasies - Care to tell us how the world got out of the terrible depression of the 30s?
 
Aug 26, 2005
16,771
4
#25
I can tell economics is not something you studied in University and your ideas are just products of maybe a couple of books here and there and emotions running through your system.

I study Law and I studied economic electives. Generally I've studied economics as a hobby. That shouldn't deter you from discussing things with me though, I am probably as knowledgeable or even moreso than people I've encountered who did it as a degree. Depends on what area I guess. Emotions? Not really, I don't see economics as something to tie in with emotions.


On the demand vs. supply issue - I'm talking about the economic issues we are having today and not the ones we had in the 70s which were supply driven.
Why have interest rates (across the globe) remained at near zero levels for the past three years without creating inflationary problems and tell me whether the WORLD (not only the US) is having a supply problem or a DEMAND one.


As for Keynesian fantasies - Care to tell us how the world got out of the terrible depression of the 30s?
Who said they haven't created inflationary problems? The US's method for measuring CPI/inflation is butchered to look like nothing has gone up in price. I don't think the ordinary person sees it that way - well, the ones I have talked to. How can you print billions of dollars with no inflation? If you go by the Austrian understanding it is a definitive act: print more money and it is devalued in relation to the goods/services you used to buy. I think it is a bit ludicrous to bring about some of the biggest expansions in history in the money supply and believe prices have only gone up 1-2%. I remember a Paul video citing a free market group which calculated the inflation at 30+% 9+% per year using older methods. The AIER produced an Everyday Price Index (EPI) which says inflation is about 8% - whereas the CPI-U measured 3% around the same time. I'd say a similar disparity in theoretical and real world prices are similar here in Australia as well. This is a decent read.

EDIT/ADD:
[video=youtube;3yCSOQgUEYM]http://www.youtube.com/watch?v=3yCSOQgUEYM[/video]

Your second question is very vague, which problem are you referring to?

As for your third, you want to say it was caused by the private sector and the government intervention stopped it right? The war too? Here:

[video=youtube;dgyQsIGLt_w]http://www.youtube.com/watch?v=dgyQsIGLt_w[/video]

Friedman is wrong though, the Fed, well Bernanke, later did admit that the Fed was at fault for the Great Depression.

Let's just say like Friedman and the Austrian's I don't think it was some New Deal shindig.
http://mises.org/freemarket_detail.aspx?control=515
 

Flint

Legionnaire
Jan 28, 2006
7,016
0
United States
#26
The way to get the economy going is to put money in the pockets of ordinary people.
And how do you do that? You(I am sure you mean the government because I can't think of anybody else) don't "put" money in people's hands. That was was called the stimulus. Guess what? It is gone. Now what? I have a novel idea. Get them jobs and they won't need the stimulus. where do jobs come from? Somebody puts their money at risk to make something. Why is it so simple for me to understand and you have such a hard time with it?
 

Flint

Legionnaire
Jan 28, 2006
7,016
0
United States
#27
Say the $1 of tax that was taken from a rich person (that would have most likely gone unspent) via tax increases and given to the middle class person via tax decreases will most likely be used to purchase something as middle class and lower income families tend to spend a larger share of their wallet consuming stuff. That $1 spent will have a multiplier effect depending
Problem is your definition of spending is vary narrow. If I buy a loaf of bread that is spending. Warren Buffett has bought 10 million GM shares. That is not spending? Would you rather government take that money from him and spread it around? I also find the "multiplier" argument a circular logic. This is the same logic that says sending out food stamps invigorates the economy. If that works why not send everybody food stamps?
 

Flint

Legionnaire
Jan 28, 2006
7,016
0
United States
#28
so Flint/Kaz, what is the solution in your opinion?
For the start let's stop regurgitating this 1%/99% mantra. It just shows you are not an original thinker. If it was such an apt description I am sure you would have come up with it before the crowds. The "solution" is right in front of you. Since you love the Clinton years I am sure, let' go back there. What was the secret?
 
Feb 22, 2005
6,884
9
#29
Earth to Flint, wake up Flint, wake up. Helloooo, we have been doing exactly what you suggest for the last few decades and that is what has gotten us in the this shape. Giving heavy tax cuts the very wealthy has not been working or our economy should be great right now.

And how do you do that? You(I am sure you mean the government because I can't think of anybody else) don't "put" money in people's hands. That was was called the stimulus. Guess what? It is gone. Now what? I have a novel idea. Get them jobs and they won't need the stimulus. where do jobs come from? Somebody puts their money at risk to make something. Why is it so simple for me to understand and you have such a hard time with it?
 

Behrooz_C

Elite Member
Dec 10, 2005
16,651
1,566
A small island west of Africa
#30
And how do you do that? You(I am sure you mean the government because I can't think of anybody else) don't "put" money in people's hands. That was was called the stimulus. Guess what? It is gone. Now what? I have a novel idea. Get them jobs and they won't need the stimulus. where do jobs come from? Somebody puts their money at risk to make something. Why is it so simple for me to understand and you have such a hard time with it?
Is that the only line of my post you care to comment on?

But anyway, what I meant was, pay people a decent wage so they can afford to buy goods they don't really need, not just pay bills and get by. I could elaborate further with examples, but do I really need to?
 

IPride

National Team Player
Oct 18, 2002
5,885
0
Toronto, Canada
#31
I study Law and I studied economic electives. Generally I've studied economics as a hobby. That shouldn't deter you from discussing things with me though, I am probably as knowledgeable or even moreso than people I've encountered who did it as a degree. Depends on what area I guess. Emotions? Not really, I don't see economics as something to tie in with emotions.




Who said they haven't created inflationary problems? The US's method for measuring CPI/inflation is butchered to look like nothing has gone up in price. I don't think the ordinary person sees it that way - well, the ones I have talked to. How can you print billions of dollars with no inflation? If you go by the Austrian understanding it is a definitive act: print more money and it is devalued in relation to the goods/services you used to buy. I think it is a bit ludicrous to bring about some of the biggest expansions in history in the money supply and believe prices have only gone up 1-2%. I remember a Paul video citing a free market group which calculated the inflation at 30+% 9+% per year using older methods. The AIER produced an Everyday Price Index (EPI) which says inflation is about 8% - whereas the CPI-U measured 3% around the same time. I'd say a similar disparity in theoretical and real world prices are similar here in Australia as well. This is a decent read.

EDIT/ADD:
[video=youtube;3yCSOQgUEYM]http://www.youtube.com/watch?v=3yCSOQgUEYM[/video]

Your second question is very vague, which problem are you referring to?

As for your third, you want to say it was caused by the private sector and the government intervention stopped it right? The war too? Here:

[video=youtube;dgyQsIGLt_w]http://www.youtube.com/watch?v=dgyQsIGLt_w[/video]

Friedman is wrong though, the Fed, well Bernanke, later did admit that the Fed was at fault for the Great Depression.

Let's just say like Friedman and the Austrian's I don't think it was some New Deal shindig.
http://mises.org/freemarket_detail.aspx?control=515

So US manipulates the various measures for inflation (CPI, Core, headline, PPI, etc) as it pleases to show inflation is staying where it is? Why don't you tell us what measure for inflation you are using? Exact definition please and let us know how it's been tracking over the past 4 years for some of the major economies in the world?
The reason why I think you're really a newbie to these economics discussions is that you don't even realize that THE MARKET, independent of what the US gov says, has its own way of telling you what its expectations for inflation are right? You can take the difference between the yield on a typical US treasury bond and a TIPS (inflation protected)? Or you could just use common sense and look at the yield on a 10-yr US bond which is now below 2% - if any logical investor questioned the integrity of the US monetary system or future prospects for inflation the rate would not be below 2%!!!!

We can touch on some of the other points once you can come up with a counter argument to above.
 
Aug 26, 2005
16,771
4
#32
Measuring the CPI is a tricky business, as you should know and inflation itself lends itself to varying definitions. So yes, manipulation is quite easy to do considering how and what is tracked and the proportion it is given to whole expenditure. I have already linked you to the AIER site and they go through their process of calculation and the page even had a PP conversion method that date back to 1920. The other link has gone into specifics of the change in how inflation has been calculated and changed. If you are too lazy to click the link and read then I'd be wasting my time continuously answering the rest of your questions which are digressing further and further from the topic. Especially since I am in the middle of exams. Most logical people question the inflation numbers, let alone logical investors. That is why gold/silver have gone up so much because people are hedging against what has been happening. Some things may have inflated between 1-2% but the rest, overall? Although we are getting into the realms of finance, Bond yields aren't reliable. WWII led to prices increasing dramatically but the bond rates remained low. During the 80s the bond yields were high when inflation was low.

http://mises.org/freemarket_detail.aspx?control=396
 
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Mahdi

Elite Member
Jan 1, 1970
6,999
497
Mjunik
#33
^^^^

one article by one institution with a clear agenda doesn't mean something is true. Try TPC or something like that.


Your Ayn Rand fantasy is working so well in Somalia. No gubment, no taxes, bidness thrivin'. If we had your way we would all be pirates. In retrospect, here is a hilarious article from 2001.
http://www.theatlantic.com/past/docs/issues/2001/05/maass.htm

If we had appropriate regulations against tax cheats doing business in America, none of them would ever dare thinking about taking their money elsewhere. Here is a fact, even if our tax rate for the super rich was 50%, all the capitalists in Australia would still want to come to America to do their business because despite the republican assault on the middle class, there is still no society with as much disposable income as America's. You would have to be a complete fool not to want to do business here. The shame is, without Reagan voodoo economics, we could have had a much greater edge today.
That article is the business....awesome!
 
Aug 26, 2005
16,771
4
#34
The Mises Organisation is an institution that advocates the Austrian school of economics. IPride talked about the market having its own measures. Well the 2 cents of arguably the biggest free market proponents out there is relevant then. Anyway, the points/stats stand.
 
Aug 26, 2005
16,771
4
#36
It doesn't really matter if you follow their ideals, what they stated stands. And to pretend like they're the only bunch of economists who don't subscribe to the government's inflation figures is just a red herring.
 

Flint

Legionnaire
Jan 28, 2006
7,016
0
United States
#37
Is that the only line of my post you care to comment on?

But anyway, what I meant was, pay people a decent wage so they can afford to buy goods they don't really need, not just pay bills and get by. I could elaborate further with examples, but do I really need to?
Who is against paying people "a decent wage so they can afford to buy goods"? But before paying anybody anything, they need jobs. This is where you fall flat on your face because every proposal you make acts to stop jobs. There is not a single establishment in our neighborhood who pays minimum wage. No laws needed. No stimulus needed. Nothing to renew. Find out how it happens and you've cracked the code.
 

Behrooz_C

Elite Member
Dec 10, 2005
16,651
1,566
A small island west of Africa
#38
^^^ Yes and spending is one way of creating jobs. Cutting tax on the rich is not the only one by any stretch.

Look, there is a possiblilty that both theories are valid if they can be married to create a middle ground. We don't have to have a system that goes to extremes either way.
 

tajrish

Elite Member
Oct 18, 2002
3,037
197
57
San Diego, California
#39
Dude, you lived in Europe yourself. I mean, I'm just saying. There are many things money could be spent on and even more importantly, there might just be a correlation between the drop in intelligence in the United States among poor people and the fact that government spending has been cut ever since Mahroom Hazrate Ronald Reagan decided to just do that.

Greece, UK, Ireland, Spain...they all have been cutting spending recently. Works like a charm.

Now anyway, to the point of paying taxes and what government spending is good for....lots of things government might have an interest in to work well and private organisations won't have the incentive...education as an example, security would be the other...etc.
Amoo Mahdi gol, the problem with the government spending in US is the inefficiency associated with anything that the government gets its hands on. As an example, and using your own reference, the department of education on the federal level is absolutely meaningless, cumbersome, out-of-touch, and overall a big waste. Let the states and local governments be in charge of their own programs and get rid of it on the federal level. The same goes with the DOE, and many other Federal agencies such as EPA. Here in California, we have CAL-EPA, and every major city has its own environmental office on the county and city levels that oversees their own laws and regulations. Now, how does the federal EPA contribute anything to that equation? Almost every local environmental laws are more restricted than the ones from the federal side, so by default, the federal rules and regulations are nothing but irrelevant.

I understand the fact that government can and should have certain involvement providing certain services, but I promise you that even a drastic cut in the spending, let's say a 30% cut, wouldn't change a bit in the way those services are rendered in terms of quality.
 

Mehran(ISP)

<b>Administrator</b>
Oct 16, 2002
3,404
0
MD, USA
#40
I'm gone end this argument once and for all. Let's increase the taxes for the wealthy but have an entrepreneurship tax break. As long as you show that you started a business or hired more employees from the prior year your taxes won't increase and will in fact drop. Both sides win. Will the wealthy not support this? Or they gone come up with another excuse.