The Motley Fool Discussion Boards
Retirement Discussions / Retired Fools
|Subject: Re: More Shutdown Fallout||Date: 10/20/2013 10:12 AM|
|Author: telegraph||Number: 18688 of 20219|
"And to minimize life in hell - the money tap was opened.
Now if money is put to uses that generate more wealth, a positive
cycle is started again ---- in theory. However, if money is directed
poorly - well things do not improve so much."
Yepper, the dems opened the taps to the tune of a TRILLION in stimulus porkulus, and most of it was spend poorly. Wasted boondoggles in 'greenie energy' that just enriched the donors and bundlers for Obama's campaign cash raising machine, which itself is the most wasteful way to blow money.
Obama and his progressive drones believe in the Krugman theory of broken windows. That is, if you pay someone to go out and break a thousand windows, it 'stimulates' the economy because now all those people need to replace the windows. Of course, in reality, all those folks had to spend money or borrow money to pay someone to fix them, leaving them with less resources to spend elsewhere or invest in the business, or they filed an insurance claim and their rates go up, the insurance companies 'paid out' but now have less reserves - and the cash disappears from the 'plus side' of every ledger. There is no money fairy
"When money is artificially created and is not used to create
a higher taxable base, the wealth cycle is stopped."
Well, it is just slowed. Money 'created' just devalues the dollar. It lowers interest rates, killing seniors and others living off the interest on their savings. It kills those trying to save for retirement as their funds barely grow with zero percent interest rates. It also will lead to a giant rise in interest rates in the future. It will also lead to massive inflation in the future to bring the dollar back into balance.
"So, you have a choice - increase taxes and restrict growth - or put money created into reas that generate economic growth which then generates tax dollars."
Well, the progressive democrats are doing both at the same time. More taxes and even more taxes. ObamaKare taxes. Penalties on 'high cost' health policies. "Socialized" rates so the young subsidize the older folks. (ie, taxes on the young). Hidden Obama taxes (21 in the ObamaKare bill, right?). The 'ethanol' tax where you subsidize the fat cat agri business folks 75c/gallon, and you pay 50% to 100% more for food using corn, like chicken, corn products, beef, dairy.......
Now Obama wants another trillion in taxes......ever more taxes......
Just wait till the average family starts paying that $3000-$4000 per family for the carbon taxes Al Gore and his ilk want.
"If you fail to generate the higher tax revenues from growth in the economy - you will either have to increase taxes - and suffer.
Or you will delay increasing taxes and eventually drive interest rates
sky high. "
Haven't you ever heard of SPEND LESS?
"We are very likely to become those poorer saps. "
"We" already are. The standard of living drops year after year. The average disposable income drops year after year. The average work week is dropping in hours paid. The real unemployment is over 15%. the boomers are being forced to retire early due to a rotten economy under the 'progressives'. There are more folks on food stamps than ever before, by tens of millions.
worse, Obamakare will make tens of millions work less so they get the subsidies. Why make over $60,000 as family when it will cost you $13000 in subsidies? Better to make $56,000 and get a free $13000 a year subsidy than make $66,000 and get no subsidy!......It will be the era of low income as 'desirable' to qualify for 'free' everything from the government. Why work hard when the folks who don't work as hard come out ahead?
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|