Re The GOP Has Become A Dangerous Cult

["Dave Farber" <dave () farber net>]

---------- Forwarded message ---------
From: Dave Wilson <dave () wilson net>
Date: Mon, Dec 18, 2017 at 6:32 PM
Subject: Re: [IP] Re The GOP Has Become A Dangerous Cult
To: David Farber <dave () farber net>
CC: ip <ip () listbox com>


(Speaking solely for myself): All good points, however, there is plenty of
reason to be concerned that putting more money into the hands of entities
that will not actually spend it on goods and services -- widgets, in what
follows -- is not going to expand the economy and could in fact trigger a
recession.

The economy is failing to grow as rapidly as we'd like not because
corporations lack cash to spend on new factories, hiring more people,
upgrading their plants, etc. in order to builder more, or better, widgets.
Corporations are in fact awash in cash, sitting on trillions, and are
continuing to see record profits. They have not been holding back because
of a lack of cash. Rather, corporations *are choosing to NOT spend money on
growth-related activities because of a lack of demand for additional
widgets*. They're not going to make more widgets if nobody is going to buy
them; that would be stupid. What they are most likely do do with their tax
windfall is engage in efforts to boost their share prices, typically via
stock buybacks.

What could conceivably have helped the economy would have been injecting a
trillion dollars of money in to the wallets of people who would actually
spend it on goods and services. This would have driven demand, corporations
would have poured cash in to meeting that demand, and poof, rapid,
sustainable growth (paid for, largely, through increased tax receipts from
those increased sales at companies).

This is not rocket science; the idea that what economies like Japan have
been sufferiing from for three decades is a demand problem is pretty much
accepted by mainstream economists. We're not Japan and are not likely to
become so, but the idea that the only thing limiting America's growth has
been a lack of cash for corporate investment is demonstrably false.
-dave

On Mon, Dec 18, 2017 at 4:02 PM, Dave Farber <dave () farber net> wrote:

> ---------- Forwarded message ---------
> From: Michael Robertson <mr () michaelrobertson com>
> Date: Mon, Dec 18, 2017 at 3:58 PM
> Subject: Re: [IP] Forbes : The GOP Has Become A Dangerous Cult
> To: David Farber <dave () farber net>
> CC: ip <ip () listbox com>
>
>
> "There is no difference of opinion among sane, credible people about
> whether America needs a massive tax cut for the rich."
>
> This is called framing. Since the Federal tax system is already highly
> progressive any tax cut will naturally flow to those who generate more
> income. You can call them "rich" if you like, but that doesn't change the
> economic realities.
>
> There are some sane, credible people who believe that we have
> unsustainable welfare program (social security, Obamacare, Medicare, food
> stamps, SSI disability, etc). There are only 3 options to rationalize the
> programs: cut benefits, raise taxes or grow the economy beyond the meager
> 1.x% growth we've seen over the last decade+ to generate the taxes required
> to pay for those programs. It seems completely reasonable and even
> desirable to take actions such as lowering corp taxes, lowering taxes on
> productivity and reducing regulation to get the economy growing at the 3-4%
> range. In fact, this seems far wiser than cutting programs or raising taxes
> in spite of the author's derogatory claims otherwise.
>
> -- MR
>
> 858-344-6911 <(858)%20344-6911>
>
> On Mon, Dec 18, 2017 at 12:22 PM, Dave Farber <dave () farber net> wrote:
>
> > ---------- Forwarded message ---------
> > From: <shannonm () gmail com>
> > Date: Mon, Dec 18, 2017 at 2:05 PM
> > Subject: Forbes: The GOP Has Become A Dangerous Cult
> > To: Dewayne Hendricks <dewayne () warpspeed com>, Dave Farber <
> > dave () farber net>
> >
> >
> >
> > While the headline sounds hyperbolic the content is serious.
> >
> >
> > Forbes: The GOP Has Become A Dangerous Cult
> >
> >
> >
> > http://www.forbes.com/sites/chrisladd/2017/12/02/the-gop-has-become-a-dangerous-cult/
> >
> >
> > Sent on the fly from my phone
>
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