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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: The Fiscal Cliff-Solving the wrong problem||Date: 11/15/2012 5:11 PM|
|Author: MadCapitalist||Number: 408645 of 459931|
I'm not interested in "studies" which prove or disprove your (adjective deleted) take on how taxes should interact with the perfect economy while excluding anything too hard to model. We reached the edge of the abyss with those hair-brained schemes.
He's not interested in anything that contradicts his perfect ideology. Reality is clearly not doing it right if his little theories don't work. Couldn't possibly be because the theory is wrong. Oh no. Not that. Reality is wrong!
1poorguy (didn't even have to click back to see who you were responding to...I have no doubt who it is)
This is truly unbelievable. You have it exactly backwards. Real world empirical results show an inverse correlation between taxes and economic growth. Those empirical results are not from some "perfect economy." They are from *actual* economies. That is the reality, no matter how much you want to deny it.
The theory isn't that raising taxes will *necessarily* cause economic growth to slow or that cutting taxes will *necessarily* cause economic growth to increase. There are far too many other variables affecting economic growth to make this claim. The theory is only that other things equal, higher taxes reduce economic growth and lower taxes increase economic growth, and the empirical evidence is very strong on this matter.
Earlier you talked about science, but it is clear that you don't understand the scientific process one bit. You said:
"Same for you and your studies. They tried it. It didn't work. I don't care what the theory said, it was wrong and needs to be fixed (or tossed)."
This shows a profound ignorance of science. You can't just pull anecdotes out of the air and not control for other variables. In science, you vary one variable (i.e. the control) and hold the other variables constant. You obviously can't do this with an anecdote from economics.
You can't do controlled experiments on economies, which is why the best we can do is study a broad array of empirical evidence and see if we can make sense of it.
No anecdote is sufficient to disprove the theory, so to say "They tried it. It didn't work." and pretend that this is science is pure foolishness.
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