Sunday, March 25, 2012

Things I don't understand about supply side economics or libertarians.

1. They never deal with the consequences of long term tax cutting.
2. They never seem to understand that they are a part of society and seem to be out for "perfect liberty" or "perfect freedom."
3. It's simple business - capitalism runs on marginal profits and the ability to make a profit depends on - you guessed it - DEMAND. If a customer is willing to buy a product but can't pay for it, the prudent business decision is to lower the price or do other things to increase your volume to make up for the lost revenue. It takes 2 - a buyer and a seller to complete a transaction.

4. Tax rates are not the determinant of demand - it may impact demand, but on the whole, not the sole factor to how demand is derived.
5. I wonder why we never ever hear of a rich person who does NOT invest or put the money to productive use. Lowering of taxes on Rich or Corporations results or translates directly into hiring or investment.
6. Also, aren't the rich in a way holding back the capitalist machine by investing in financial products for higher returns? If those savings of the rich are thrown into Wall Street, then how is it productive for the nation or the country as a whole?
7. Trickle down - Top pisses on the Bottom.

8. CEO pay has risen from 50X avg pay in the 1980s to astronomical 2 or 300X in the intervening years. How has this benefitted society and the nation?


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