Can someone explain to me how tax cuts "create jobs"?

Please explain why you think this is the case because it looks like you are just trying to associate something everything agrees is bad, the current crisis, with something you feel is bad, the west buying too many cheap goods from the east.

You want me to explain why it's bad to import $100 worth of goods, services, etc. and export only $50 worth?

Are you joking?

No, I want you to explain how balanced trade would have prevented this crisis.

you are an idiot then because i quite clearly gave you an example of what i was talking about with the auto industry and canada.

Let me ask you a question to make that point
does the stats you are using document just the difference between inport and exports (cars and parts in my example) or does it include the transfer of profit back to the head office too.

Re read your data and you can see the difference you moron.

then go back and read what i am saying.

the last economic crisis was when bush sr lost to clinton. (it the economy stupid). The fact is there are virtually no stocks that have lost so much money in the last drop that it would wipe out all the gains that have happened since that last recovery. under that senerio give current average stockmart roi $200 is still worth $300 after the crash.
That a $100 i would have to pay tax on. Assuming that my current company was going to post a modest 5% growth and the capital tax rate was 50%. The act of switching would put 50 buck of profit into the new company. Which means it makes no sense to move my money unless the new company was making at least 10% (100 *5% - 50 *10%).
If that happens the country loses the extra 5% of economic growth that would have happened (and all the jobs that would lead too)

conversely if the tax rate was dropped to 25% then 75 bucks would go into the new company (100*5% < 75+10%) and the company which is growing faster has the capital it need to make that growth happen. Which results in an increase in the economy over all.


even if that were to happen that would put more money in the government coffers to pay for social services it need to pay for (unemployement, retraining) which still have a positive effect.

It a temporal diversion of tax revenue (getting more money now when the economy is bad, and getting less when the economy is good).

all without putting punitive on economic growth (higher taxes).

Because it would of kept more of the wealth we had in the West in the West and sent less to the developing world. The banks would of had more money, people would have more jobs creating wealth and over all more of the wealth we created would of stayed here.

By sucking in huge amounts of goods and services, cheap or otherwise you take money out of the system. And instead of a complete collapse we would of had a good old recession which hits every so often.

Recessions are not new, I have lived through at least 3 or 4. The system over inflates and then corrects itself by deflating. Because a lot of the wealth was still in the country we weathered it, yes people lost homes and jobs, but it was short term. This time the jobs are not there, they've been shipped out. Along with a lot of the wealth.

The only way we could fund the consumer society we had based on importing goods was with debt and to fund more consumer wealth we increased the debt. Then along comes a President who decides big business and Wall Street can do no wrong (sarcasm), a war that cost a fortune, a housing market about to collapse and you end up where you are today.

We would of had a recession, but it would of been something we could of managed.

It wouldn't have. Better regulation of the financial sector would have.

Paul went off on this free trade tangent because I was trying to explain to gideon that a tax rebate is less stimulative than direct government spending because consumers can use that money to buy goods produced elsewhere.

Gideon then tried explaining to me that American trade was balanced, based on whatever guerrila math he's using, so therefore the $40B trade deficit in November of 2008 wasn't really a deficit according to him. (Maybe it has something to do with time shifting?)

Trying to talk to gideon is kind of like trying to talk to that Joella girl from the biggest loser. His eyes are looking at you and his lips are moving, but he must be having a conversation with someone from a past life or someone on another planet because nothing he says makes any sense.

You're not just learning that now are you?

I learned that over a year ago, during the whole "unauthorized use of content by tube sites is not really stealing" argument he had going on.

Given enough rope he'll happily hang himself for weeks.

If there was better regulation of derivatives markets things would be nowhere near as bad as they are now. That is a big part of the problem. I've mentioned this in other posts. Putting the regulations we need in place would be relatively easy, but very painful for banks... Which is OK by me.

Macroeconomics 101... funny to see the sort of ramblings in a forum that is supposed to be formed by entrepreneurs

Whether it's theft, piracy, murder or high treason we are not going to do anything about it. Neither will anyone else. Dreaming we can close them because of the content is pointless. In fact it's worse than pointless because it stops us thinking of a solution.

Have the people who think tax cuts are a solution been on a desert island for the last 8 years?

We've tried that and it did not work. So let's cut taxes again and see if it works this time.

Reality.

Government needs $XYZ to run the country.
They will not get this from the expanding economy.
Most of that money should be spent in the country which provides jobs for workers. (OK GWB fucked that one with Iraq.)
Those workers earn money and pay taxes.

Giving tax cuts allows people to have more money in their pockets.
So they go to the malls and buy imported goods.
Employs a shop worker in the US and a factory worker in China.

OK in both instances there are variables, the Government does spend money overseas and they will buy Chinese computers or similar. But they are more likely to spend more of the money fueling the economy in the US than tax cuts will. The only way out of this short term is more investment inside the US, getting people to work. Long term better schools to train people and build the manufacturing base. Think about what you would spend an extra $100 a month on.

How much of it would be spent on something that will long term benefit the US and how much would be spent on imported goods?

We have had tax cuts for 8 years and look how great it worked.

To give tax cuts a Government has to have the money in surplus or cut services which means jobs or borrow the money from those who have it. Like the Chinese. Or print more.

Which one do you think is best so you can get an extra $100 each month in your wage packet?

Actually most people here are a long way from business men and the post you quoted proves it.

People have not been investing seriously in the US which is what got them into the mess they're in. They've been investing badly in stocks that crashed because they were GAMBLING or investing in a house which was over valued and they were mortgaged to the eye balls.

People seem to think that tax money is money lost. It's not. Next time you see a guy sweeping your street, a policeman, a road worker, social worker and a lot of other people you're seeing tax money being spent.

All those people are earning money supporting the world we live in and paying taxes to support the world we live in.

Next time you walk through a mall you see your tax cuts working for you. Employing a shop assistant to sell you goods you might not need made in a place a long way from the Mall.

It's more complex than that and both systems can be abused, GWB has shown how. But people have to realise there are no free meals or rides out of this.

All I can say about taxes is...the payroll tax has to be the most ingenius and sinister thing ever created.

If everybody in this country had to write a check to the govt. every quarter to pay their taxes we would have a revolt.

Instead they get it taken out of their pay before they ever see it. And they always take more than what is needed so the people are all happy when they get money from the govt. at the end of the year.

I'm always amused at guys rejoicing that they got 2 or 3 grand back from the govt and can't wait to buy those new tires for their pickup truck with that money. lol

Never realizing just how much the govt. just reached in and took and then KEPT for a full year without any interest owed.

Of course most of the real adult webmasters on here (not the surfers or guys who work for adult companies) that own their own business already know the truth. Last year I paid $19,000 in taxes every quarter. And if you don't think that hurt...

So yeah, I can definitely see where tax cuts would have helped me to hire someone. I just moved out here to Vegas in Oct. of 2008. And my first order of business was going to be to hire 2 more people to take some of the workload off of me.

But unfortunately the economy completely crumbled at the same time that I moved here.

Now if I could have had access to that $19,000 I paid the govt. in the 4th quarter, I still could have followed my plan and employed two more people. But as it stands now, I need every penny I've got.