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  #16 (permalink)  
Old 06-04-2007
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jviehe jviehe is offline
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
yeah we all know taxcuts solve economical problems (sarcasm). I think you should have a good look at the system used in scandinavia. The governement supplies a lot of services for laberors and children which increase the workforce size and productivity, leading to a high gdp and good economical growth. These countries are doing just as good as the USA.

lowering taxes for economical growth is a short term policy, basically its boosting the economy now by shifting problems to the future (increased debt). Taxcuts aren't as good as some people make it seem.

Good cheap health care, governement programs for child daycare, subsidized jobs for the unemployed and cheap loans to those who recieve education structurally increase the size and quality of the labor force and the economy. Ironically not by lowering taxes, but by increasing them.
You care confusing taxes with spending. Tax cuts do not generate deficits. Failing to cut spending at the same time does. HIstory shows that raising taxes hurts the economy, loweing taxes helps it. This is not scandanavia and politics is not exact. Seeing as how the govt already takes 2 trillion in taxes, which is more than most countries entire output, Id say they have quite enough money to provide "Good cheap health care, governement programs for child daycare, subsidized jobs for the unemployed and cheap loans to those who recieve education"

Fact is our tax systems hurts the economy and it needs to be scrapped.
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  #17 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
yeah we all know taxcuts solve economical problems (sarcasm). I think you should have a good look at the system used in scandinavia. The governement supplies a lot of services for laberors and children which increase the workforce size and productivity, leading to a high gdp and good economical growth. These countries are doing just as good as the USA.

lowering taxes for economical growth is a short term policy, basically its boosting the economy now by shifting problems to the future (increased debt). Taxcuts aren't as good as some people make it seem.

Good cheap health care, governement programs for child daycare, subsidized jobs for the unemployed and cheap loans to those who recieve education structurally increase the size and quality of the labor force and the economy. Ironically not by lowering taxes, but by increasing them.
The neocons don't understand how to see things in the long term. It's all about those tax cuts now! Who cares abour record national debt? That's their grandchildren's problem.
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  #18 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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You care confusing taxes with spending. Tax cuts do not generate deficits. Failing to cut spending at the same time does.
Ok so you wanna cut both taxes and spending. Leave everything to the market? I hear the US has problems enough with social security, healthcare, and veterans which require governement money. Some services should be provided or paid for by the governement for the benefit of all people.

Quote:
HIstory shows that raising taxes hurts the economy, loweing taxes helps it
Only works on the short term.

Quote:
Fact is our tax systems hurts the economy and it needs to be scrapped.
public spending
denmark: 68% of gdp
sweden: 53% of gdp
usa: 12.4% of gdp

gdp per capita
denmark: $44,742 (3,0% growth)
sweden: $38,480 ( 4,2% growth)
usa: $39,452 (3,4% growth)

I think this proves that you dont need low taxes to have a growing economy. Its a myth. Providing good services to citizens does the same while at the same time providing a higher standard of living for the common man and woman.

Last edited by erikvv; 06-04-2007 at 12:17 PM.
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  #19 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by AjaxPress View Post
The neocons don't understand how to see things in the long term. It's all about those tax cuts now! Who cares abour record national debt? That's their grandchildren's problem.
Again, taxes have little to do with debt. Debt is caused by spending exceeding revenue. What you further fail to see is that we collect more now after the tax cuts than we did before the tax cuts. Thats because tax cuts increase the tax base through economic growth. Its obvious neolibs dont understand basic economics.
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  #20 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
Ok so you wanna cut both taxes and spending. Leave everything to the market? I hear the US has problems enough with social security, healthcare, and veterans which require governement money. Some services should be provided or paid for by the governement for the benefit of all people.



Only works on the short term.



public spending
denmark: 68% of gdp
sweden: 53% of gdp
usa: 12.4% of gdp

gdp per capita
denmark: $44,742 (3,0% growth)
sweden: $38,480 ( 4,2% growth)
usa: $39,452 (3,4% growth)

I think this proves that you dont need low taxes to have a growing economy. Its a myth. Providing good services to citizens does the same while at the same time providing a higher standard of living for the common man and woman.
It proves nothing. The US is not Denmark or Sweden. Our economy is 26 times larger than both of those countries combined. Our govt collects 4 times as much just in tax as the entire product of both of those countries combined. Our population is 20 times larger. If anything, those numbers show how disgusting those countries govts have become.

The only a govt should provide is protection of life and liberty. Everything else the people can provide for themselves. And tax cuts work way into the long term if left alone. Problem is once the govt sees the increased revenue, they take it and waste it, instead of returning it to the people to further increase the economy.
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  #21 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Problem is once the govt sees the increased revenue, they take it and waste it, instead of returning it to the people to further increase the economy.
Giving back or spending are not that different: either way the money ends up in the private sector again.
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  #22 (permalink)  
Old 06-04-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
Giving back or spending are not that different: either way the money ends up in the private sector again.
Except when you give it back, or let them keep it to begin with, you are letting the people spend it on what is really important to them rather than what the government thinks is good for people.

I know much better what I want to spend my money on than Uncle Sam does.
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  #23 (permalink)  
Old 06-05-2007
Thematic-Device Thematic-Device is offline
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by cygnus View Post
Except when you give it back, or let them keep it to begin with, you are letting the people spend it on what is really important to them rather than what the government thinks is good for people.

I know much better what I want to spend my money on than Uncle Sam does.
To a point... The libertarians in this thread can enjoy deluding themselves into thinking that roads would be built, as would lighthouses, or that everyone would still be educated, and that no one would try to take power in the nation with hardly any infrastructure, a corroding education system, and failing economy.

You laissez-faire types have more in common with the marxist who thinks that they'll end war, suffering, and all manner of struggle between men.

When you would like to come out of your delusional wonderland and live in the real world which requires pragmatism, the "Wealth of Nations" is a good place to start. Certain public institutions are absolutely vital to the economy, and a strong economy is vital to a strong democracy (India is one of the few exceptions).
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  #24 (permalink)  
Old 06-05-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
Giving back or spending are not that different: either way the money ends up in the private sector again.
Why dont we just give them ALL our money then? Then they can distribute it how they think is fair.
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  #25 (permalink)  
Old 06-05-2007
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erikvv erikvv is offline
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by jviehe View Post
Why dont we just give them ALL our money then? Then they can distribute it how they think is fair.
Because for some/many people this would remove the motivation to work.
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  #26 (permalink)  
Old 06-05-2007
Americano Americano is offline
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by Thematic-Device View Post
To a point... The libertarians in this thread can enjoy deluding themselves into thinking that roads would be built, as would lighthouses, or that everyone would still be educated, and that no one would try to take power in the nation with hardly any infrastructure, a corroding education system, and failing economy.

You laissez-faire types have more in common with the marxist who thinks that they'll end war, suffering, and all manner of struggle between men.

When you would like to come out of your delusional wonderland and live in the real world which requires pragmatism, the "Wealth of Nations" is a good place to start. Certain public institutions are absolutely vital to the economy, and a strong economy is vital to a strong democracy (India is one of the few exceptions).
The only institution important to current administration and many who post on this board is the defense department and its voracious appetite for public debt:

~"Growth during the first quarter of this year was held down by some factors - notably, significant declines in inventory accumulation, net exports, and federal defense spending - that seem likely to be at least partially reversed in the near term," Bernanke said in prepared remarks to be delivered via satellite to the International Monetary Conference in Cape Town, South Africa.~

The Fed chief noting that reduced defense spending is a drag on the US economy is quite a statement, actually pathetic considering what little remains of our antiquated infrastructure and failing education system.

I'm sure people will be calling for more tax cuts to again blind the public, as always accompanied by more federal defense spending to increase the cooked GDP numbers they worship.
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  #27 (permalink)  
Old 06-05-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
Because for some/many people this would remove the motivation to work.
Wouldnt that then mean that as you increase taxes, motivation to work decreases, and therefore Denmark and Sweden must have lower productivity workers.
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  #28 (permalink)  
Old 06-05-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by jviehe View Post
Wouldnt that then mean that as you increase taxes, motivation to work decreases, and therefore Denmark and Sweden must have lower productivity workers.
No if income tax is 35-50% like it is in denmark you'll still see great benifits if you work harder. I dont think it discourages working harder. What you were suggesting was taking away all their income and redistributing it. That is what happens in communism and that is when people dont have motivation for work.
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  #29 (permalink)  
Old 06-05-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by erikvv View Post
No if income tax is 35-50% like it is in denmark you'll still see great benifits if you work harder. I dont think it discourages working harder. What you were suggesting was taking away all their income and redistributing it. That is what happens in communism and that is when people dont have motivation for work.
If I knew I had to work twice as hard to keep half as much money, I wouldnt be motivated. The 20% average tax rate here is bad enough. I couldnt imagine having 50% of my income taken to give out to those who didnt work for it.
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  #30 (permalink)  
Old 06-05-2007
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Re: Economy slowing down? - 1.3% growth in 1Q 2007

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Originally Posted by jviehe View Post
If I knew I had to work twice as hard to keep half as much money, I wouldnt be motivated. The 20% average tax rate here is bad enough. I couldnt imagine having 50% of my income taken to give out to those who didnt work for it.
but then again you dont have social housing, free education, universal healthcare and free daycare of children.
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