Here is a link to an article by Jack Welch, former CEO of GE. I think it has some good thoughts.

BTW...while I haven't had time to read all of the posts since my last one, I did see some good thoughts by Captain Not so Oblivious...Thanks

TS

 

Is this more good news???

http://www.washingtonpost.com/ac2/wp...nguage=printer

runnert

 

As I had previously stated, Tax Cut’s work every single time they are tried. Job growth is ALWAYS the last thing to happen in a rebound to the economy…

This is Good and Bad news. It just depends if your Republican or Democrat.

If you’re Republican then it is GOOD news…


If you’re Democrat, then it is the END of the world BAD news…

 

Yes, that's what people like to hear..MORE SPENDING! LESS TAXES. These people do not understand the whole number system, or perhaps the rational number system. This is creating a massive deficit, and those come back to haunt you.

 

Yes, you are correct “more spending” is the cause of deficits. Tax cuts have always and will always cause more revenue which equals “surpluses” it is those in congress that SPEND more then they take in that cause deficits.

The other thing that causes deficits is Tax HIKES, always has and always will, no way around it unless SPENDING is cut.

Those who are intelligent know that you should only cuts “entitlement” programs, never defense spending, since that is one of the federal governments MAIN responsibilities. “Entitlement” programs have never been a “responsibility” of congress. There is NO reason to increase “entitlement” program budgets more then the actual cost of inflation. If inflation is 0.5% then you increase the budget 0.5%, if its 1.3% then you increase it 1.3%, no reason what so ever to increase it more then inflation.

Those receiving entitlements don’t have any need for more increase then actually inflation. If you practice that you would NEVER have deficits unless of course for a national emergency or time of war, of which we are in.

There will be another few rounds of tax cuts coming soon. It makes sense. It helps everybody, and forces congress to either maintain the budget or screw everyone.

So basically it is like this:

Tax cuts = surpluses for the taxpayer and the government.
Tax hikes = deficits for the taxpayer and the government.

Very simple…

 

Wow, ever consider going into accounting? I'm sure Enron would hire you any day.



Yeah.... if the government is taking in more money, they'll be further in debt.... Did I misunderstand all my math classes up to now?

 

Look at the whole equation.

Tax hikes take away money from people, so in short term yes it gives the gov't more money. But look at the long term affects. With less money to spend people don't buy as much stuff (loss in taxes) and the economy starts to go downward (what we are slowly getting out of).

Tax cuts do the opposite. Give the people more money and they will spend more money promoting more growth.


Bush's tax cuts were/are a great thing. Personally I feel he needs to now cut back some gov't spending. Because as you stated, it will come back to haunt us, even with a growing economy.

 

No need to, here I will give you a very simple class ok…

If you bring in $2,500 a month income from your job you can spend up to how much per month?

a. $7,425
b. $6,912
c. $3,782
d. $2,500

The correct answer is d. $2,500. However the United States Congress would have answered a. $7,425 That answer causes deficits.


Nope, you got that all wrong my friend. Here let me give you another free lesson on economics 101.

When you lower taxes for ALL you put more money in people’s pocket. For those NOT in business that has a short term effect on their personal spending and thus has a short term economic growth.

However, when you put more money in Big Business’s pocket that has a LONG term effect, and puts more money in MORE peoples pocket because it causes job growth that in turn causes more tax revenue to be collected and thus BIG TIME cash flowing into Washington. Another great effect it has EVERY time is it grows the economy, when the economy grows people have more faith in their personal situation and job security. That in turn causes people to SPEND more of THEIR money which in turn funnels MORE money into Washington.

It’s a win-win situation EXCEPT Congress does not know a damn thing about math. They seem to think 2+2 = 28 for some odd reason.

The answer to having surpluses in Washington (with the exception of national emergency and war) is to give back more and more money to the people “TAX CUTS” it gives Congress less and less money to blow away on useless programs, and raising budgets of “entitlement” programs. When they create new entitlement programs like this huge drug give-a-way they are working on it causes deficits. It is NOT tax cuts, but Congress’s own wish list of which they have NO money to fund.

It is NOT Congress’s money to give away, it is mine and yours and every other tax payer. I hear some tax payers, like liberals states some BS about ”I will gladly pay more in taxes because that’s what I believe in” I say great for them and unless I am mistaken I don’t think the IRS would every refuse them liberals writing a check out and stating ”A gift for the government”

Give me my money back, and if some dumb chit wants to pay more in taxes the excellent they can write out a check and send it in.

You see that is still a win-win situation, it keeps people like me happy and it would keep the liberals happy as well. I get to keep more of my money and they can send more of their money to be wasted on stupid programs…

 

Excellent post...

I agree, the first thing they need to do is forget that big drug give-a-way program they are working on. There is no money for it and I do NOT want to pay for it. If the liberals do then excellent they need to get their pens ready and open their check books and start writing the Gift checks out...

 

Tax cuts promote growth as previously stated several times by several people. Excessive spending promotes a huge deficit as also previously stated multiple times. The biggest spending problem in our country are indeed handouts. Why is it the government’s responsibility to pay for other people’s choices and mistakes? And for the people that think this is good practice, let's go ahead and do it ourselves and y'all just pay my rents, food, and taxes for me cause I don't want to anymore and by skipping the government and paying my bills directly you can at least save a few bucks.

 

The less money a governemnt takes in, the less it can spend without creating a deficiT It's called "the rational number system".

Not if the money is spent properly, and then distributed to build infrastructure (which makes the economy more efficient) or distrubuted to the less wealthy (creating non-polarized consumer spending, which in turn creates a stronger economy)

 

Try a few economics classes then come back and argue with some knowlege under your belt.



Jobs are always the last thing to make a comeback in an economic downturn. How can companies do less business, make less money, support the same number of employees, and have a good business plan for a recovery? When the money starts rolling in, as it has, then jobs won't be far behind.

 

Well, your still not getting it yet. True the less the government takes in the less it can spend, but it is NOT the governments money to spend as they please. You see the government takes in far more money then actually needed to “properly” support crucial programs such as defense. Entitlement programs are NOT crucial, at least not to a point.

Yes there is a need to help those that can not help themselves, such as the handicapped, those with medical condtions beyond their control, some of the elderly and the mentally retarded. Then you have a big group of people of which the vast majority REFUSE to work and “think” they are entitled to a FREE check and FREE food and FREE medical.

It is called welfare and in my opinion only a small percentage on welfare are actually entitled to it. Those who are, are NOT entitled to a pay raise every year above those of us who actually GIVE THEM THE FREE MONEY AND FOOD AND FREE MEDICAL.

WE could agrue about rasing the budget for them by the actual cost of living, but there is absolutely no reason to raise the welfare budget about the cost of living, NONE what so ever.

However people as yourself most likely argue it everyday and thus we have DEFICTS.

By limiting how much take in the government gets to freely hand out will also limit them to how much they “try” to spend over what they get. After time the taxpayers will get tired of watching these idiots overspend every year and elect them OUT of office.

I believe your other mistake is to look at it as a zero sum equation to how the economy or government operates. In other words if there was $100,000 amount taken in to the government and they gave back $50,000 they would only have $50,000 to work with in the out years.

That is a basic mistake many people make. It is not, nor will it every be a zero sum equation. That $50,000 the government gives back could net them an additional $200,000 income in the out years…

As a matter of fact every time true tax cuts have been practiced, by President Kenndy and President Reagan it has worked out to be a HUGE win fall for the federal government, but the problem was the morons in Washington spent it all plus a huge amount more and thus deficits resulted.

I basically addressed this with my above comment. Yes your right the government need to “properly” spend the money, they do NOT need to re-distribute it.

The government very rarely does anything that helps to build infrastructure to make the economy more efficient. The private sector will ALWAYS do a much better job at building the infrastureture to make the economy more efficient.

About the only thing the government does is stand in the way and put up road blocks to an efficient economy. What the government does best in assisting to make a more efficient infrastureture to support the economy is to give back money, TAX CUTS…

In conclusion, tax cuts NEVER ever result in deficits, overspending ALWAYS results in deficits.

Another simple lesson in economics for you:

You have a take home of $2,500 a month and you outflow is $2,450. You have a surplus of $50. Now you get a $300 a month raise, which results in a take home of $2,800 but you have an outflow of $3,000. A deficit of $200.

It wasn’t the pay raise (tax cut) that caused the deficits, it was the “over spending”…

 

Oh, as far as jobs go:

Jobs are directly related to demand.

Demand = Jobs

When demand fades away, as with a slow economy then there is no need for as many jobs.

For example, a company sales 10 cars a month (demand) and it takes 20 people to build the 10 cars a month. When the economy slows and the (demand) is for only 5 cars a month then it only takes 10 people to build 5 cars a month and thus 10 other people are out of a job.

When the economy picks up (demand) then the company may need to build 10 cars a month or maybe 15, thus job growth.

Some jobs that come back will be some of the ones that went away, and some will never come back but new jobs will be created that never existed.

Do you know of any big companies making horse buggies anymore?

Nope, those jobs went away to never return because there is no demand for horse buggies like there was 100 years ago.

Again, the economy is not, nor has it ever been a zero sum equation. The economy is always changing, jobs are always revolving, some go away and new ones are created. In short, the economy is a continuing evolution always in motion, always changing…

 

I don’t know where you got that or who taught you that but they are absolutely WRONG. Re-distributing money from the wealthy to the less wealthy has never, nor will it ever create a stronger economy.

It does the opposite by creating a weaker economy and less incentive for business investments. When you have re-distribution that money comes from somebody, and it sure isn’t the government.

The money you take from those that actually earn it and are smarter on how to invest it and spend it is giving to someone that has not earned it and most likely does not have a clue on how to properly spend it or invest it.

It comes out of the pockets of some that would have used it for capital investments, machinery, productivity enhancements, someone investing in a 401k of which is about the same as capital investments into a company.

If you take $1,000 away from one person who may have invested it into capital equipment they may have seen a return of $3,000 5 years later on that money.

When you give $1,000 to someone that has not earned it, nor has any idea of how to invest it, then there will be no possible $3,000 return 5 years down the line.

Let’s face it, if someone who has not earned the $1,000 spends in on pizza and beer that’s not a bright investment, no payoff, just wasted capital to make some (liberals) feel good about themselves helping some moron to lazy to get off their *** and actually earn the money themselves.

It is as simple as this:

Give a man a fish – Feeds him for a day (re-distribution)

Teach a man to fish – Feeds him for a lifetime (no re-distribution)

In other words NEVER give somebody something from another person such as money. Give them the tools to make it on their own. Sometimes that included the tool of tough love. Cut off their FREE government money supply and their self survival instincts turn on and they actually get off their lazy *** and make some money of their own…