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View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

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  •  Toothless regulation... (3+ / 0-)
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    J M F, corvo, Kombema

    In the Frank-Dodd bill (that is being weakened further).  Half-measure in healthcare in the ACA.  A stimulus that was half of what was needed and half again in tax cuts.  Social safety net programs on the table.  First responders, teachers and police on the chopping block.  No prosecution of bad actors.  What could possibly go wrong?

    'Where free unions and collective bargaining are forbidden, freedom is lost' - Ronald Reagan, Communist

    by RichM on Mon Apr 01, 2013 at 07:49:02 AM PDT

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    •  The stimulus actually contained plenty of good (1+ / 0-)
      Recommended by:
      Kombema

      spending....infrastructure....cash aid to the states (which is where the 700,000 + public workers have been laid off)...a bigger EITC for working people along with the payroll tax holiday.
      GDP = (G)overnment spending + (C)onsumer spending + (I)nvestment spending + Net Exports
      Cutting taxes for people who make less than $100,000 a year (C)onsumer spending) is very stimulative for the economy and should be a compromise that we are all willing to make with the CONS at any time.  The problem with the economy is simple....depressed aggregate demand due to a private sector debt load that is coming down from 300% of GDP or $42 TRILLION at its peak in 2007.  Yes, the stimulus needed to be much bigger, the economy could probably use an extra $500 billion in Govt deficit=stimulus every year until unemployment gets below 5%.

      Don't hate on tax cuts for the working people....they are almost as good as any Govt investment (from a pure fiscal POV)...yes, bridges, highways, and high speed internet cable last longer and they should all be done as well, but the CONS hate public investment....they might do some more tax cuts.....but probably not.

      MMT =Reality
      http://neweconomicperspectives.org/

      "The Earth is my country and Science my religion" Christiaan Huygens

      by Auburn Parks on Mon Apr 01, 2013 at 02:07:52 PM PDT

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      •  Unfortunately, economic analysis has shown that (1+ / 0-)
        Recommended by:
        RichM

        tax cuts are far less stimulative than direct spending. Better than nothing, sure.

        "Government by organized money is just as dangerous as Government by organized mob." -- Franklin D. Roosevelt

        by Kombema on Mon Apr 01, 2013 at 02:57:57 PM PDT

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        •  It all depends (0+ / 0-)

          First, what are the economic circumstances:
          With the private sector trying to delever from debt levels of 300% of GDP
          http://blogs.reuters.com/...
          The tax cuts will be mostly spend paying down debt and not in buying goods and services...this is why they don't show up in the GDP numbers....GDP is all spending related and interest costs + principal reduction are discounted in comparison to spending an extra dollar on Cheetos et al.
          While the tax cuts may need lead directly to greater economic spending today...the best thing we can do as a country is to get the private sector debt levels down as fast as we possibly can.....debt jubilee anyone...
          Second, there are great differences in the multiplier effect (what you mean by stimulative) depending on the income of the person getting the additional dollar...its called the marginal propensity to consume...the more money you make the less likely it is that you are going to spend (RE:stimulate) with that extra tax dollar.  This is why tax cuts for the rich are useless, the already spend whatever they want...while tax cuts (FICA specifically) for people making less than $100,000 a year are the most stimulative tax cuts possible.
          As an aside....you couldn't offer up enough infrastructure spending by the Govt to get to the left of me...I was just trying to point out to the class that there is no reason to be reflexively against tax cuts....as long as they are going to the workers and not the rentier class.

          MMT = Reality
          neweconomicperspectives.org

          "The Earth is my country and Science my religion" Christiaan Huygens

          by Auburn Parks on Mon Apr 01, 2013 at 04:22:58 PM PDT

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