The View From 1776

The Daily Socialist 8/6/10

Why not raise taxes to 100% of all income, socialize all private businesses, and put everyone on the public payroll?

Posted by .(JavaScript must be enabled to view this email address) on 08/06 at 10:54 PM
  1. The point of Krugman's piece was that if you want to expend a public dollar to increase economic activity, do you give it to a rich person (through a tax cut), or to a poor person, (food stamps).

    The rich man will say, "Thank you very much, and put the money in the bank." No stimulus effect.

    The poor man will say, "Thank you very much, and now I can buy a can a soup for dinner tonight!" Immediate stimulus effect and sales by the soup company, and the grocery store who have to hire more people and stock more soup.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/08  at  10:36 PM
  2. Mr. Jay:

    The point we are making, the one that eludes you and Krugman, is that taking money from one person and giving it to another doesn't increase real economic activity. In fact, it reduces real economic activity, because the government skims part of the transfer payment to pay its vastly overpaid apparatchiks.

    The only way to create real economic activity is to expend the work time and capital to produce a real good or service for which a free-market demand exists. Otherwise, we're back at Keynes's digging holes one day, filling them the next day, re-digging them the third, etc., ad infinitum. At the end of such government stimulus spending, we've make no economic progress at all, which is what has occurred with Obama's Keynesianism.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/09  at  12:56 PM
  3. Your supply side argument fails (as Reagan's VooDoo economics failed) because "demand" cannot be produced by "wishful thinking."

    Before your producers will produce more goods, they must see increased demand. This is a chicken and egg argument.

    If all your consumers are without jobs, there will be no demand, no matter how many tax breaks you cut for your top 2% of the population.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/11  at  04:47 PM
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