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View Diary: Taxing the rich: it's not about "fairness" (182 comments)

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  •  demand drives an economy (31+ / 0-)

    An excellent, well-argued diary.

    I'd like to emphasize a point that Gooserock makes - wealth concentration in too few individuals suppresses demand for goods/services. If the lower ends of the economic totem-pole don't have enough cash, they cannot spend to propel an economy forward. This is a significant negative externality, even if one wants to use as limited a measure as Gross Domestic Product to determine the success of an economy.

    I have seen economists make the argument that the lethargic economic recovery is, at least in part, due to the  lack of consumer demand. Companies are not hiring new workers, nor are they expanding manufacturing, etc. (despite sitting on very high levels of corporate cash) because they fear they don't have the consumer demand for their products... and that is in part due to the fact that the consumers are broke, or not far from broke.

    Using the tax system to redistribute the wealth over a broader base would be an excellent economic stimulus.

    •  Broaden the base. (4+ / 0-)
      Recommended by:
      Nailbanger, elwior, Sychotic1, llywrch

      GOP points out that a broader tax base makes more people against taxes.

      Broader wealth and income base makes more people for growth.


      Barack Hussein Obama- Don't Mock the Constitution.

      by odenthal on Sun Nov 25, 2012 at 06:48:02 PM PST

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    •  In 2006/2007 residential construction in the U.S. (3+ / 0-)
      Recommended by:
      Sparhawk, Sychotic1, wbr

      was distorted to the point where 40% of new home construction went to 2nd home vacation units.

      40% to useless excess.

      Economically... insane. Both on the demand side, where next to none of that made sense. And on the supply side, where you're wasting the building materials.

      Survey eastern Pennsylvania for example after example. Same for mountain areas in Arizona. and on and on and on. Big houses where there are no local jobs.

    •  About that demand (1+ / 0-)
      Recommended by:

      Our Tampa Bay Buccaneer home football games have been "blacked out" on TV because they couldn't sell out the stadium. Meanwhile, we have articles in the paper that our area's salary growth is among the lowest in the country. Do we see a connection? People can't friggin afford to go!

      The care of human life and happiness, and not their destruction, is the first and only object of good government. - Thomas Jefferson

      by deebee on Mon Nov 26, 2012 at 08:49:08 AM PST

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